EconPapers    
Economics at your fingertips  
 

An Equilibrium Model of Search Unemployment

James Albrecht () and Bo Axell
Additional contact information
Bo Axell: Research Institute of Industrial Economics (IFN)

No 99, Working Paper Series from Research Institute of Industrial Economics

Abstract: This paper develops a simple general equilibrium model with sequential search in which a non-degenerate wage offer distribution is endogenously determined. We use this model to analyze the comparative statics effects of increases in unemployment compensation on the unemployment rate and aggregate welfare taking into account the induced change in the wage offer distribution. Our results differ significantly from the predictions of the standard "partial-partial" model. For example, one can expect a selective increase in unemployment compensation, made available to those who impute a relatively low value to leisure, to decrease the equilibriumum rate of unemployment.

Keywords: General equilibrium; unemployment; Subsidies; Wage; Mobility (search for similar items in EconPapers)
JEL-codes: E24 H20 J60 (search for similar items in EconPapers)
Date: 1983-07
References: View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.ifn.se/wfiles/wp/wp099.pdf (application/pdf)

Related works:
Journal Article: An Equilibrium Model of Search Unemployment (1984) Downloads
Working Paper: An Equilibrium Model of Search Unemployment (1983) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0099

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Series data maintained by Elisabeth Gustafsson ().

 
Page updated 2017-10-18
Handle: RePEc:hhs:iuiwop:0099