Unemployment and Labor Market Rigidities: Europe versus North America

Nickell, Stephen

doi:10.1257/jep.11.3.55

Cited by 1,526 publications

(1,198 citation statements)

References 7 publications

Supporting

Mentioning

1,084

Contrasting

Unclassified

Order By: Relevance

“…The monthly exit rates from unemployment p(θ) are from the OECD unemployment duration database. The benefit replacement rates ρ come from Nickell (1997), except for the Italian rate which has been updated using Office of Policy (2002). The interest rate is set at 4 percent annually.…”

Section: A2 Renegotiation Of the Severance Paymentmentioning

confidence: 99%

Privately optimal severance pay

Fella

Tyson

2013

The B.E. Journal of Macroeconomics

View full text Add to dashboard Cite

This paper constructs an equilibrium matching model with risk-averse workers and incomplete contracts to study both the optimal private provision of severance pay and the consequences of government mandates in excess of the private optimum. The privately-optimal severance payment is bounded below by the fall in lifetime wealth resulting from job loss. Despite market incompleteness, mandated minimum payments significantly exceeding the private optimum are effectively undone by adjustment of the contractual wage, and have only small allocational and welfare effects.J.E.L. classification codes: J23, J64, J65.

show abstract

Section: A2 Renegotiation Of the Severance Paymentmentioning

confidence: 99%

Privately optimal severance pay

Fella

Tyson

2013

The B.E. Journal of Macroeconomics

View full text Add to dashboard Cite

show abstract

“…The rate of owner-occupation might therefore be an important factor omitted in empirical studies of unemployment. In fact, the fit of Nickell's (1997) regression to explain equilibrium unemployment improves considerably -the R 2 rises from .76 to .82 -when he adds the proportion of home-ownership as a proxy for mobility to the list of explanatory variables. The estimated coefficient of this variable implies that a 10 percentage point rise in the owner-occupation rate is associated with an additional 1.3 percentage points of the unemployment rate.…”

Section: Links Between Housing and Labor Markets -Stylized Facts And mentioning

confidence: 99%

“…Consistent with this statement is the result of a recent paper by Nickell (1997) which does not find a satisfactory empirical explanation when estimating how labor market rigidities, the treatment of he unemployed,taxes, union coverage, union and employer co-ordination in wage bargaining -all key factors in prominent models -impact on unemployment. Nickell (1997) remarks that both geographical and occupational mobility of workers seem to be higher in the United States than in Europe where unemployment is higher. But he does not explore its causes any further, nor does he discuss the dimension of the role mobility could play as an explanatory variable in unemployment equations.…”

Section: Introductionmentioning

confidence: 97%

Housing, Mobility, and Unemployment*

Dohmen¹

2009

Homeownership and the Labour Market in Europe

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Housing, Mobility and UnemploymentThomas J. Dohmen The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent, nonprofit limited liability company (Gesellschaft mit beschränkter Haftung) supported by the Deutsche Post AG. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. The current research program deals with (1) mobility and flexibility of labor markets, (2) internationalization of labor markets and European integration, (3) the welfare state and labor markets, (4) labor markets in transition, (5) the future of work, (6) project evaluation and (7) general labor economics. D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. This paper develops a model that shows why high-skilled workers move more and are therefore unemployed less than low-skilled workers. The model can explain the paradoxical empirical regularity that higher owner-occupation rates are associated with higher levels of unemployment although home-owners tend to be unemployed less. The choice of housing tenure affects moving costs and thereby regional mobility and unemployment. The paper analyzes the impact of symmetric and asymmetric shocks on mobility and unemployment, and discusses effects of government intervention in the housing market. In addition, it is shown that moving costs reduce job search effort and search effectiveness.

show abstract

“…See, for example, Nickell (1997) for a cross-country empirical analysis. Empirical work in the United States has shown convincingly that the duration of unemployment benefits significantly affects unemployment spells (see Meyer 1990).…”

Section: Notesmentioning

confidence: 99%

Redistribution toward Low Incomes in Richer Countries

Saez¹

2006

Understanding Poverty

View full text Add to dashboard Cite

This essay presents a critical overview of the findings of economic research on the problem of redistribution toward low incomes in developed countries. The discussion is organized as follows. The second section briefly describes the positive and empirical analysis (for which numerous good surveys are available) and focuses mostly on the normative analysis. The third section starts with a discussion of the optimal structure of cash transfer programs, then extends the analysis of optimal transfer programs along various new dimensions. The fourth section discusses how the results of the third section might be affected in situations where individuals may not be able to make the best choices for themselves. The fifth section provides a conclusion and an educated view on what should be done for redistribution toward low incomes.

show abstract

Unemployment and Labor Market Rigidities: Europe versus North America

Cited by 1,526 publications

References 7 publications

Privately optimal severance pay

Privately optimal severance pay

Housing, Mobility, and Unemployment*

Redistribution toward Low Incomes in Richer Countries

Contact Info

Product

Resources

About