sharp discontinuities in eligibility for severance pay and extended unemployment insurance (UI) benefits in Austria …

Fluctuations in the equilibrium rate of unemployment can only be understood within a theory of the natural or … equilibrium rate. It is not enough to say that unemployment is the difference between supply and demand in the labor market … themselves better off. At the equilibrium unemployment rate, employers cannot obtain labor at lower cost by offering work at …

unemployment, called ranking. With the filling of vacancies unaffected by the selection rule, both equilibria have the same … aggregate dynamics, but different distributions of unemployment durations. With the threat point for the Nash bargained wage … being a worker with zero unemployment duration, the wage with ranking is much more sensitive to changes in the tightness of …

This paper presents a signaling explanation for unemployment. The basic idea is that employment at an unskilled job may … equilibria satisfying the Cho-Kreps intuitive criterion involve unemployment. However, there always exist budget balancing wage … subsidies and taxes that eliminate unemployment. Also, for any unemployment equilibrium, either there always exists a set of …

A search-theoretic general equilibrium model of frictional unemployment is shown to be consistent with some of the key … regularities of unemployment over the business cycle. In the model the return to a job moves stochastically. Agents can choose … unemployment …