Unemployment and Endogenous Growth

Redistribution and Employment Policies with Endogenous Unemployment

We study the features of optimal transfers to the non-employed which include those unable to work, the voluntarily unemployed, and the involuntarily unemployed. Both voluntary and involuntary unemployment are endogenous. We analyze optimal government policies in the presence of two types of involuntary unemployment, frictional and that induced by efficiency wages. We consider how the quality of...

Optimal Unemployment Insurance with Endogenous Search Effort

In the framework of a search and matching model, when search effort enters the labor market matching function, search effort by one worker generates a negative externality on other workers searching for jobs. The solution to the social planner’s problem may not be decentralized in a competitive market. Calibration shows that the current US unemployment insurance (UI) system generates an 8.07% w...

Market power, Growth and Unemployment

I present a model where firms and workers set wages above the market-clearing level. Unemployment is thus generated by their exercise of market power. Because both the labor and product markets are imperfectly competitive, market power in the labor market interacts with market power in the product market. This interaction sheds new light on the effects of policy interventions on unemployment an...

Endogenous growth promotors and inhibitors in tahiti lime

Social Security, Unemployment, and Growth

The paper develops an overlapping generations model that highlights interactions between social security, unemployment and growth.The social security system has two components: old age pensions and unemployment insurance. Pensions have a direct effect on economic growth. Both pensions and unemployment benefits influence equilibrium unemployment caused by wage bargaining. Since unemployment impa...