Product Market Regulation, Firm Selection and Unemployment This paper analyzes the effect of Product Market Regulation (PMR) on unemployment in a search model with heterogeneous multiple-worker firms. In our setup, PMR modifies the distribution of firm productivities, thereby affecting the equilibrium rate of unemployment. We distinguish between PMR related to entry costs and PMR that generates...

Persons who are unemployed for long periods of time in our society constitute a large, complex, ongoing problem, even during times of rleatively high employment. The significance of this problem is supported by the fact that between 1947 and 1962 long-term unemployment had risen 100 percent, while short-term unemployment rose 20 percent. We were also reducing short-term unemployment during this...

OBJECTIVE Quantify, for both genders, the correlation between the depression incidence rate and the unemployment rate in Portugal between 1995 and 2013. METHODS An ecological study was developed to correlate the evolution of the depression incidence rates estimated by the General Practitioner Sentinel Network and the annual unemployment rates provided by the National Statistical Institute in ...

The study is aimed to test causal relationship between growth and unemployment, using time series data for Pakistan from 1972 to 2006. Growth is considered to be a pathway to decrease the level of unemployment. Unemployment is a social and political issue. It is a phenomenon where human resources are wasted leading to deacceleration in growth. Johanson Cointegration shows that there is long run...

Using longitudinal data from the Dutch Labor Force Supply Panel (OSA), this article examines how unemployment scarring (i.e., wage setbacks following unemployment) and its underlying mechanisms operate across gender in the Netherlands over the period 1985-2000. A series of fixed effect panel models that correct for unobserved heterogeneity, reveal a notable disparity in unemployment scarring by...

There is conflicting evidence regarding the recent evolution of unemployment duration in the U.S. In this study we rely on censored quantile regression methods to analyze the changes in the US unemployment duration distribution. We employed the decomposition method proposed by Machado and Mata (2003)to disentangle the contribution of the changes generated by the covariate distribution and by th...

This paper studies the implications of globalization for aggregate output and welfare when risk averse workers face the risk of unemployment. The impact of globalization on the welfare of workers and aggregate output depends on the degree of substitutability between domestic workers and imported inputs. When the degree of substitutability is high (low), then globalization reduces (increases) wa...

In this paper, in order to study the impact of o¤shoring on sectoral and economywide rates of unemployment, we construct a two sector general equilibrium model in which labor is mobile across the two sectors, and unemployment is caused by search frictions. We …nd that, contrary to general perception, wage increases and sectoral unemployment decreases due to o¤shoring. This result can be underst...

This paper presents a simple model of wage bargaining and employment ows designed to address the e ects of policies to increase the rate of exit to employment of the long-term unemployed. Exit rates from long and short-term unemployment have two e ects on the unemployment rate: a positive one as high exit rates strengthen current employees' bargaining positions and thus wages and a negative one...

We study theoretically and empirically how optimal unemployment insurance (UI) benefits vary over the business cycle. Theoretically, we characterize how the moral hazard cost and the consumption smoothing benefit of UI vary over the business cycle in a standard job search model. This analysis motivates our empirical strategy which tests whether the effect of UI on unemployment durations and the...