In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment … are more likely to turn out to be 'lemons'. We use microdata for Spain and the U.S. and find that the ratio of the job … finding probability of the unemployed to the job finding probability of employed job seekers was smaller in Spain than in the …

. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies with calibrated … parameters which only differ by the degree of unemployment insurance and assume that they are hit by a common technological shock …

We construct and calibrate a general equilibrium business cycle model with unemployment and precautionary saving. We …' income riskier, both by increasing the unconditional probability of unusually long unemployment spells, and by making wages … fiscal policy offsets the cycle, holding unemployment benefits constant but varying the tax rate procyclically to smooth …

Existing models of equilibrium unemployment with endogenous labor market participation are complex, generate … procyclical unemployment rates and cannot match unemployment variability relative to GDP. We embed endogenous participation in a … variabilities but also generates strongly countercyclical unemployment rates. With some wage rigidity the model also matches …

in explaining the variability of unemployment and vacancies. If we incorporate long-term wage contracts into the model …

Recent research in macroeconomics emphasizes the role of wage rigidity in accounting for the volatility of unemployment …

in geographical mobility, unemployment and labor market institutions. Rational agents vote over unemployment insurance … high unemployment, low geographical mobility and high unemployment insurance, and one 'American' steady-state featuring low … unemployment, high mobility and low unemployment insurance. …

shocks and selection, I find that the exit hazard rates into and out of unemployment increased after the reform by over 1 … implies a net decrease in unemployment of a third of a percentage point, which accounts for about one quarter of the fall in … unemployment during the period of study. …

A welfare analysis of unemployment insurance (UI) is performed in a general equilibrium job search model. Finitely … accumulated by workers. A matching function relates unemployment, hiring expenditure, and search effort to the formation of jobs … to match microeconomic studies of unemployment spells. Under logarithmic utility, numerical simulation shows rather small …