Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Unemployment vs. mismatch of talents: Reconsidering Unemployment Benefits
European University Institute.
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1998 (English)Report (Other academic)
Abstract [en]

We develop an equilibrium search-matching model with risk-neutral agents and two-sided ex-ante heterogeneity. Unemployment insurance has the standard effect of reducing employment, but also helps workers to get a suitable job. The predictions of our simple model are consistent with the contrasting performance of the labor market in Europe and US in terms of unemployment, productivity growth and wage inequality. To show this, we construct two fictitious economies a┬┤with calibrated parameters which only differ by the degree of unemployment insurance and assume that they are hit by a common technological shock which enhances the importance of mismatch. This shock reduces the proportion of jobs which workers regards as acceptable in teh economy with unemployment insurance (Europe). As a result, unemployment doubles in this economy. In the laissez-faire economy (US), unemployment remains constant, but wage inequality increases more and productivity grows less due to larger mismatch. The model is used to address some political economy issues.

Place, publisher, year, edition, pages
Stockholm: IIES , 1998. , 41 p.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 661
Keyword [en]
Unemployment, Productivity, Mismatch, Ex-ante heterogeneity, Search, Unemployment benefits, Efficiency, Inequality
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41086OAI: oai:DiVA.org:su-41086DiVA: diva2:328245
Available from: 2010-07-02 Created: 2010-07-02 Last updated: 2010-07-02Bibliographically approved

Open Access in DiVA

fulltext(526 kB)308 downloads
File information
File name FULLTEXT01.pdfFile size 526 kBChecksum SHA-512
84dce49afaa6d2f3bca83f7138f8bbb59999cef2593253bc40c7b6a0516e54d379286b8432c49d2c5c8c04790177a72d8af743056148742b873f317216d64c26
Type fulltextMimetype application/pdf

By organisation
Institute for International Economic Studies
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 308 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 50 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf