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Unemployment vs. Mismatch of Talents

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Author Info
Marimon, R.
Zilibotti, F.

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Abstract

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 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.

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Publisher Info
Paper provided by Stockholm - International Economic Studies in its series Papers with number 661.

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Length: 34 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:stocin:661

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Related research
Keywords: UNEMPLOYMENT ; PRODUCTIVITY ; EFFICIENCY;

Other versions of this item:

Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
D33 - Microeconomics - - Distribution - - - Factor Income Distribution

Cited by:
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  1. Daron Acemoglu & Robert Shimer, 1998. "Efficient Unemployment Insurance," NBER Working Papers 6686, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Ricardo Lagos, 2006. "A model of TFP," Staff Report 345, Federal Reserve Bank of Minneapolis. [Downloadable!]
    Other versions:
  3. Maxim Bouev, 2002. "Official Regulations and the Shadow Economy: A Labour Market Approach," William Davidson Institute Working Papers Series 524, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  4. Rafael Lalive & Josef Zweimueller, 2002. "Benefit Entitlement and the Labor Market: Evidence from a Large-Scale Policy Change," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  5. Persson, Mats, 2000. "Five Fallacies in the Social Security Debate," Seminar Papers 686, Stockholm University, Institute for International Economic Studies. [Downloadable!]
  6. Pieter A. Gautier & Coen N. Teulings & Aico van Vuuren, 2005. "On-The-Job Search and Sorting," IZA Discussion Papers 1687, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Christian Haefke, 2001. "Shocks and Institutions in a Job Matching Model," Economics Working Papers 568, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 2001. [Downloadable!]
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  8. Turrini, Alessandro Antonio & van Ypersele, Tanguy, 2002. "Traders, Courts and the Home Bias Puzzle," CEPR Discussion Papers 3228, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Lindbeck, Assar & Wikström, Solveig, 1999. "The ICT Revolution in Consumer Product Markets," Seminar Papers 670, Stockholm University, Institute for International Economic Studies. [Downloadable!]
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  10. Tatsiramos, Konstantinos, 2004. "The Effect of Unemployment Insurance on Unemployment Duration and the Subsequent Employment Stability," IZA Discussion Papers 1163, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Rillaers, Alexandra, 1999. "Education and Income Inequality: The Role of a Social Protection System," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1999017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
  12. Cobb-Clark, Deborah & Frijters, Paul & Kalb, Guyonne, 2004. "Do You Need a Job to Find a Job?," IZA Discussion Papers 1211, Institute for the Study of Labor (IZA). [Downloadable!]
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  13. Lindbeck, Assar, 2000. "Pensions and Contemporary Socioeconomic Change," Seminar Papers 685, Stockholm University, Institute for International Economic Studies. [Downloadable!]
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  14. Jess Enrique Morales Pi?ro, 2004. "Labour Market Frictions, Social Policies, and Barriers to Technology Adoption," UFAE and IAE Working Papers 633.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
  15. Andreas Hornstein & Per Krussell & Giovanni L. Violante, 2002. "Vintage capital as an origin of inequalities," Working Paper 02-02, Federal Reserve Bank of Richmond.
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  16. Wouter J. den Haan, 2003. "Temporary shocks and unavoidable transitions to a high-unemployment regime," Working Paper Series 239, European Central Bank. [Downloadable!]
  17. Svensson, Lars, 2000. "The first Year of the Eurosystem: Inflation Targeting or Not?," Seminar Papers 681, Stockholm University, Institute for International Economic Studies. [Downloadable!]
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  18. Boeri, Tito & Macis, Mario, 2008. "Do Unemployment Benefits Promote or Hinder Structural Change?," IZA Discussion Papers 3371, Institute for the Study of Labor (IZA). [Downloadable!]
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