Housing and the labor market: Time to move and aggregate unemployment $
Abstract
The Mortensen-Pissarides model with unemployment benefits and taxes has been able to account for the variation in unemployment rates across countries but does not explain why geographical mobility is very low in some countries (on average, three times lower in Europe than in the U.S.). We build a model in which both unemployment and mobility rates are endogenous. Our findings indicate that an increase in unemployment benefits and in taxes does...
Paper Details
Title
Housing and the labor market: Time to move and aggregate unemployment $
Published Date
Jan 1, 2012
Volume
59
Issue
1
Pages
24 - 36
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