Product market integration, wage dispersion and unemployment

Job Matching, Wage Dispersion, and Unemployment

The book Job Matching, Wage Dispersion, and Unemployment by Dale T. Mortensen and Christopher A. Pissarides represents an interesting piece consisting of the authors’ most important works, developed either individually or in collaboration. The book is a part of the IZA Prize in Labor Economics Series which means that the authors were awarded the prize and the book emerged afterwards. Naturally,...

Running Out of Time: Limited Unemployment Benefits and Wage Dispersion

We study unemployment insurance (UI) in a general equilibrium environment in which unemployed workers only receive benefits for a finite length of time. Although all workers have identical productivity and leisure value, the random arrival of job offers creates ex-post differences with respect to their time remaining until benefit expiration. Firms, which are also homogenous, can exploit these ...

Product Market Regulation, Firm Selection and Unemployment

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...

Wage Compression and the Unemployment Crisis: Labor Market Institutions, Skills, and Inequality-Unemployment Tradeoffs

Equilibrium Unemployment and Investment Under Product and Labour Market Imperfections

Equilibrium Unemployment and Investment Under Product and Labour Market Imperfections We study the implications of product market competition and investment for price setting, wage bargaining and thereby for equilibrium unemployment in an economy with product and labour market imperfections. We show that intensified product market competition will reduce equilibrium unemployment, whereas the ef...