Post World War II European welfare states experienced several decades of relatively low unemployment, followed by a … plague of persistently high unemployment since the 1980s. We impute the higher unemployment to welfare states' diminished … search model where workers accumulate skills on the job and lose skills during unemployment. …

In this paper the effects of unemployment on mental health are analysed. A simple model where both the occurrence of … and duration of unemployment are allowed to affect mental health is specified. Panel data are used to control for "fixed …