unemployment benefits reduce unemployment? Using a recent labour market reform in Germany as background, we find that an enhanced … effectiveness of the PEA explains about 20% of the observed post-reform unemployment decline. The role of unemployment benefit … the PEA could have had an even higher impact on unemployment reduction if there had been less focus on long …

This paper studies the effect of two labor market institutions, unemployment insurance (UI) and job search assistance … search unemployment, skill depreciation during unemployment, and idiosyncratic as well as aggregate labor market risk. The …

A key question in labor market research is how the unemployment insurance system affects unemployment rates and labor … 76% of declining unemployment after the reform, a fact unexplained by existing research focusing on job finding rates … causally link our empirical findings to the reduction in longterm unemployment benefits using a heterogeneous-agent labor …

part-time workers. A one percentage point increase in the unemployment rate led to an average decline in real hourly wages … of new hires are not helpful for understanding the behaviour of unemployment over the business cycle. …

This paper points out an empirical failing of real business cycle models in which unemployment is endogenized through a … matching function. One can easily choose a calibration to make the cyclical fluctuation in unemployment as large in the model … as it is in the data, or to make the response of unemployment to a change in the unemployment benefit as small in the …