Unemployment vs. Mismatch of Talents: Reconsidering Unemployment Benefits

@inproceedings{Marimon1997UnemploymentVM,
  title={Unemployment vs. Mismatch of Talents: Reconsidering Unemployment Benefits},
  author={R. Marimon and Fabrizio Zilibotti},
  year={1997}
}
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 with calibrated parameters which… Expand
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References

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Unemployment vs. Mismatch of Talents: Reconsidering Unemployment Benefits
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 helpsExpand
Unemployment vs . mismatch of talents : Reconsidering unemployment
We develop an equilibrium search-matching model with risk-neutral agents and two-sided ex-ante heterogeneity. Unemployment insurance has the standard e®ect of reducing employment, but also helpsExpand
Unemployment vs. Mismatch of Talents
The authors 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 alsoExpand
Wage Inequality and Unemployment: United States vs. Europe
Throughout the 1970s and 1980s, wage differentials widened in the U.S. but not in Europe, where marginal labor-force groups experienced increasing and persistent unemployment instead. Both phenomenaExpand
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This paper offers a model where firms decide what types of jobs to create and then search for suitable workers. When there are few skilled workers and the productivity gap between the skilled and theExpand
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