We develop a dynamic labor search model where production and consumption take place in spatially distinct labor markets with varying exposure to domestic and international trade. The model recognizes the role of labor mobility frictions, goods mobility frictions, geographic factors, and...

This paper analyses differences between unemployed and employed job seekers in job finding rates and in the quality of the job found. Compared to the unemployed, employed job seekers have a smaller pool of job offers that they consider acceptable; this leads to lower job finding rates but better...

In the beginning of the eighties unemployment increased dramatically in the Netherlands. Since 1984 short-term unemployment has decreased, while at the same time long-term unemployment has continued to rise, absolutely as well as relatively. The issue of long-term unemployment is current and no...

This paper studies the design of unemployment insurance when neither the searching effort nor the savings of an unemployed agent can be monitored. If the principal could monitor the savings, the optimal policy would leave the agent savings-constrained. With a constant absolute risk-aversion...

While the Internet has been found to reduce trading frictions in a number of other markets, existing research has failed to detect such an effect in the labor market. In this paper, we replicate Kuhn and Skuterud's (2004) study – which found that Internet job search (IJS) was associated with...

We develop an equilibrium directed search model of the labor market where workers can simultaneously apply for multiple jobs. The main result is that all equilibria exhibit wage dispersion despite the fact that workers and firms are homogeneous. Wage dispersion is driven by the simultaneity of...

In this paper the monopolistic competition model of Dixit and Stiglitz for the goods market and the search unemployment model of Pissarides are combined. The Pissarides part loses its Walrasian goods market and the Dixit-Stiglitz part loses its Walrasian labour market. Pissarides' results now...

One of the most important measures of the state of the labour market is the unemployment rate. However, the standard definition of unemployment ignores an important group of people who are not employed but who want to work - the marginally attached workforce. The marginally attached are defined...

We provide the first Spanish evidence about the effects on re-employment probabilities of variations in benefit levels and time-to-exhaustion. Increases in unemployment insurance (UI) benefit levels had a small disincentive effect on the re-employment hazard on average. Around this average,...

This study examines the underlying relationships that exist among import competition, employment risk, and worker earnings. In addition, we consider how such competitiveness and risk experienced on a prior job will affect, under both equilibrium and disequilibrium interpretations of the labor...