Unemployment vs. Mismatch of Talents

Ramon Marimon and Fabrizio Zilibotti ()

Working Papers from Stockholm - International Economic Studies

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.

Keywords: UNEMPLOYMENT; PRODUCTIVITY; EFFICIENCY (search for similar items in EconPapers)
JEL-codes: J64 J65 D33 (search for similar items in EconPapers)
Date: 1998
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Persistent link: http://EconPapers.repec.org/RePEc:fth:stocin:661

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