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UNEMPLOYMENT VS. MISMATCH OF TALENTS: RECONSIDERING UNEMPLOYMENT BENEFITS.
- Source :
- Economic Journal; Apr99, Vol. 109 Issue 455, p266-291, 26p, 1 Chart, 4 Graphs
- Publication Year :
- 1999
-
Abstract
- 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-five years. The model is used to address some political economy issues. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00130133
- Volume :
- 109
- Issue :
- 455
- Database :
- Complementary Index
- Journal :
- Economic Journal
- Publication Type :
- Academic Journal
- Accession number :
- 2007028
- Full Text :
- https://doi.org/10.1111/1468-0297.00432