Unemployment Vs. Mismatch Of Talents: Reconsidering Unemployment Benefits  

Oleh:

Marimon, Ramon ; Zilibotti, Fabrizio

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 109 no. 455 (Apr. 1999), page 266-291.
Topik: market; policy
Fulltext: 266.pdf (353.25KB)

Isi artikel

We develop an equilibrium search-matching model with risk-neutral agents and two-sided exante heterogeneity. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. We show, through calibrations, how the mere difference on unemployment insurance, when countries experience a common skilled-biased technological shock, may result in differences in unemployment, productivity growth and wage inequality. These results are consistent with the contrasting performance of the labour market in Europe and the United States in the last twenty-®ve years. The model is used to address some political economy issues.

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