The job finding rate declines with the duration of unemployment, but the relative importance of workers' search … rate is due to structural duration dependence and the other half to dynamic selection of the unemployment pool. Falling …

It is commonplace in the debate on Germany’s labor market problems to argue that high unemployment and low wage … dispersion are related. This paper analyses the relationship between unemployment and residual wage dispersion for individuals … unemployment. A competing view regards wage dispersion as the outcome of search frictions and the associated monopsony power of the …

. The distribution of unemployment worker types adjusts slowly, which amplifies job creation in the short run. In the long … run, falling unemployment curtails the firms' vacancy posting. The model closely matches time-series moments from U …