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- Title
UNEMPLOYMENT VS. MISMATCH OF TALENTS: RECONSIDERING UNEMPLOYMENT BENEFITS.
- Authors
Marimon, Ramon; Zilibotti, Fabrizio
- 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.
- Subjects
UNEMPLOYMENT insurance; SUPPLEMENTAL unemployment benefits; EMPLOYMENT discrimination; LABOR productivity; LABOR market; LABOR supply; WAGE differentials; LABOR demand; UNEMPLOYMENT; UNDEREMPLOYMENT; EMPLOYMENT
- Publication
Economic Journal, 1999, Vol 109, Issue 455, p266
- ISSN
0013-0133
- Publication type
Article
- DOI
10.1111/1468-0297.00432