In the seventies and eighties various competing theories put forward by the classical and Keynesian camps tried to find a convincing explanation for the unemployment problem. The structuralist model emerged from these research efforts as the dominant approach of the nineties, combining both...

The paper deals with the deterioration of human capital during spells of unemployment. In our model the probability of leaving the unemployment pool decreases with the duration of unemployment. It can be shown that with a linear deterioration function and a simple distribution function for the...