, whereby special focus is placed on unemployment duration. The results of the study indicate that in contrast to reservation … wages, offered wages decline considerably with duration of unemployment. This is the main reason that ratios of reservation … wages to offered wages increase rapidly with duration of unemployment; on average, reservation wages begin to exceed offered …

Germany, as most other European countries, has been plagued by a persistently high level of long-term unemployment … since the early 1980's. In contrast, long-term unemployment is much less of a problem in the United States. One potential … reason for the different structure of unemployment relates to institutional differences in unemployment compensation systems …

labor force participants between employment in a full time job and being on unemployment insurance benefits and considering …-time job compared to being on unemployment benefits. The effect of these financial disincentives is analyzed in simple reduced … form models of on-the-job search, unemployed search behavior, unemployment risk, and transitions out of the labor force. We …