An Equilibrium Model of Search Unemployment

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IUI Working Paper ; No. 99

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Taxation, Subsidies, and Revenue: General ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General
• Subject: General equilibrium ; unemployment ; Subsidies ; Wage ; Mobility

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Albrecht, James W ; Axell, Bo
• Event: Veröffentlichung
• (who): The Research Institute of Industrial Economics (IUI)
• (where): Stockholm
• (when): 1983

Further information

• Handle: http://hdl.handle.net/10419/94759
• Last update: 10.03.2025, 11:43 AM CET