of labor policies (and other changes in the economy) on the composition of unemployment and on unemployment duration, as … well as on wage distributions. The effect of introducing a simple unemployment insurance scheme is then twofold. First, it … increases unemployment by allowing a greater proportion of low types not to match, which decreases output. Second, it decreases …

Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The … unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies with calibrated … parameters which only differ by the degree of unemployment insurance and assume that they are hit by a common technological shock …