This paper argues that aging of the labor force affects job creation and job destruction. To analyze this, we extend a standard model of equilibrium unemployment and search in the labor market by the distinction between age specific separation risks and a productivity differential between young...

This paper explores the relationship between growth and unemployment. Knowledge formation is the source of growth, which includes the two dimensions technologies and skills. Both are connected through a technology-skill complementarity which may have limiting effects on the reallocation of labor...

Population aging translates into aging of the labor force. However, the impact of the former on the latter is neither straightforward nor uniform over specific groups. The reason is that economic decisions concerning, for example, duration of schooling or labor-market participation of women and...

This paper develops an endogenous growth model with continuous labor reallocation. Economic integration increases the home availability of technologies globally developed. The wider technology pool has implications for the vintage structure of the manufacturing sector and affects the revenues...

The macroeconomic experience has been somewhat ambiguous during the historic experiment of economic transition in the former centrally-planed countries in Central and East Europe (CEE). The economic restructuring produced a notable catching-up in terms of productivity but also a J-curve shape of...

This paper analyzes the relationship between endogenous growth and unemployment. It provides knowledge diffusion as the link between innovation-based growth through creative destruction and the labor market outcome. Three dimensions of knowledge are considered: human capital (general skills),...

This paper examines the effects of the distribution of unemployment by age on the level of unemployment. We provide an extension of the standard equilibrium unemployment model that allows for age dependent job finding probabilities and quit rates. In the empirical part of the paper we apply a...

This paper examines the effects of the distribution of unemployment by duration on the level of unemployment. It explores one central as- sumption that is observed empirically: when the share of long-term (short-term) unemployed increases, the unemployment rate increases (decreases). By...

The social costs of unemployment, in terms of unemployment's impact on European citizens' life satisfaction, relate strongly to unemployment duration. At any level of general joblessness, reducing long-term unemployment is more important than reducing the number of people unemployed at any point...

Previous literature has identified considerable non-pecuniary costs to macroeconomic fluctuation and uncertainty. The present paper investigates whether and to what extent labor market institutions can mitigate those costs. We study how life satisfaction of European citizens is affected by...