, generous unemployment insurance and active labor market programmes. It analyzes in which conditions flexicurity can be optimal …, with firms more likely to survive and thus not exposing much their workers to unemployment risk. Activation programmes … support the reallocation flow from unproductive to productive firms, helping to reduce unemployment. Low employment protection …

In this paper, we present a model of labor search in order to assess the role played by unemployment benefits in the … increase of European unemployment since the mid 70's. Our main finding is that although benefits may reduce unemployment, they … unemployment. The novel ingredient in our analysis is the simultaneous consideration of capital investment decisions and time …

This study offers an in-depth economic analysis of the two main proposals for the creation of a European unemployment … insurance scheme. One proposes the creation of a harmonised European unemployment benefit scheme that would apply automatically … unemployment insurance schemes to finance benefits from the centre to the periphery when unemployment is measurably higher than …

(2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states …, short-term as well as long-term unemployment. This allows us to examine the effects of persistence in the unemployment … process on portfolio choice. Our main findings are, first, that in case of short-term unemployment only, social security …