How does central bank conservatism affect labor market reform? In this paper we examine the economic forces at work. An … increase in conservatism triggers two opposite effects. It reduces the inflation bias of discretionary monetary policy and … hence the benefits of a reform. It also increases unemployment variability, which increases the precautionary benefits of a …

Hoe does central bank conservatism affect labor market reform? In this paper we examine the economic forces at work. An … increase in conservation triggers two opposite effects. It reduces the inflation bias of discretionary monetary policy and … hence the benefits of a reform. It also increases unemployment variability, which increases the precautionary benefits of a …

changes in heterogeneity, e.g. increased demand for skilled labor, are also analyzed. In the most reasonable setup, a change …

may in some cases increase the rate of inflation - not only in the end, but even from the start. I show that this … "spectacular" result ceases to hold if the central bank is restricted always to choose the lowest final inflation rate. On the …

a severe macroeconomic recession with mass unemployment. By the early 1990s, workers on fixed-term contracts accounted …

Should unemployment compensation be paid indefinitely at a fixed rate or should it decline (or increase) over a worker …’s unemployment spell? We examine these issues using an equilibrium model of search unemployment. The model features worker … optimal insurance program implies a declining sequence of unemployment compensation over the spell of unemployment. Numerical …

increases in youth unemployment and youth participation in active labor market programs. The impact on unemployment rates by age …This paper is concerned with the labor market experience of Swedish youths during the 1980s and the 1990s. The first … of labor market programs on youth employment. We find that the slump in the 1990s has been associated with dramatic …