Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94759
Authors: 
Albrecht, James W
Axell, Bo
Year of Publication: 
1983
Series/Report no.: 
IUI Working Paper 99
Abstract: 
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.
Subjects: 
General equilibrium
unemployment
Subsidies
Wage
Mobility
JEL: 
E24
H20
J60
Document Type: 
Working Paper

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