labor market to compare unemployment insurance (UI) expansions and payroll subsidies. In isolation, payroll subsidies that …

labor market to compare unemployment insurance (UI) expansions and payroll subsidies. In isolation, payroll subsidies that …

unemployment and output fluctuations. The central question is whether short-time work saves jobs in recessions. In our baseline … scenario the rule based component of short-time work (i.e., due to the existence of the institution) stabilizes unemployment …-time work interventions (i.e., rule changes) do not have any statistically significant effect on unemployment. These effects are …

This paper develops a model with multiple steady states (low tax and unemployment rate versus high tax and unemployment … European unemployment rates observed during the seventies. The explanation given is that even if the unemployment rate would … job creation remains low making the return to a low unemployment rate impossible. The paper shows that in some cases …

This paper illustrates why fiscal policy becomes more effective as unemployment rises in recessions. The theory is … based on the equilibrium unemployment model of Michaillat (forthcoming), in which jobs are rationed in recessions. Fiscal …; therefore fiscal policy reduces unemployment effectively. Formally the fiscal multiplier—the reduction in unemployment rate …

Some economic observers argue “structural unemployment” has increased in the wake of the Great Recession, but in this … paper we find little support for either of two arguments that suggest that structural unemployment has been on the rise. The … first argument focuses on the large increase in unemployment among construction workers. The second argument is that falling …

I calculate unemployment multipliers of fiscal consolidation policies in a standard, closed-economy New Keynesian … percentage of family firms in the labor force. I find that fiscal austerity raises unemployment. Both at peak and cumulatively …, unemployment reacts least when the budget is consolidated by increasing the rate of value-added tax. At peak, the highest increase …