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Unemployment vs. Mismatch of Talents

Reconsidering Unemployment Benefits

Bibliographic Data

ID9708629
AuthorsRamon Marimon (0000-0002-6789-9140, European University Institute, Universitat Pompeu Fabra, NBER and CEPR), Fabrizio Zilibotti (0000-0002-1807-6009, Institute for International Economic Studies, Universitat Pompeu Fabra and CEPR)
Year1999
Volume109
Issue455
Pages266-291
Publication date1999-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/1468-0297.00432
OpenAlexW3122927400
LanguageEN
Citations received37
References cited8

We 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. 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

Economics · Ex-ante · Inequality · Labour economics · Macroeconomics · Matching (statistics · Productivity · Shock (circulatory · Unemployment · Wage · Wage Inequality · Economic Policies and Impacts · Economic theories and models · Labor market dynamics and wage inequality

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Unique citing works37
Citations per year1,37
Citation span1999 - 2025 (27)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 37

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