market flows and reduce unemployment duration. Without attempting to evaluate the specific components of these Hartz reforms …

market flows and reduce unemployment duration. Without attempting to evaluate the specific components of these Hartz reforms …

This paper explicitly differentiates between unemployment and inactivity, by defining inactivity as a state in which … labor market states. In steady-state, we hence have a theory of equilibrium unemployment determined by both matching … of large flows between employment, unemployment and inactivity. Secondly, it shows that unemployment and aggregate wages …