Article ID Journal Published Year Pages File Type
5061559 Economics Letters 2009 4 Pages PDF
Abstract
Calibrated to replicate unemployment fluctuations, the standard Mortensen-Pissarides model implies that unemployment rises too strongly when benefits increase. Under an alternative bargaining assumption (right-to-manage) the model matches unemployment fluctuations, and implies a reasonable elasticity of unemployment with respect to benefits.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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The elasticity of the unemployment rate with respect to benefits
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