Fredriksson, Peter; Holmlund, Bertil - 1998 - This draft: 19 January, 1998
worker-firm bargaining over wages, free entry of new jobs, and endogenous search effort among the unemployed. The main result …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 …