Unemployment and Labor Market Imperfections

• This paper deals with the role of various types of labor market imperfections for employment and unemployment. On the demand side for labor, the paper analyzes the consequences of labor turnover costs for wage formation and employment, showing that such costs may generate persistent unemployment due to the market powers which they create for incumbent workers ("insiders"). On the labor supply side, the paper emphasizes the role of alternative types of unemployment benefit systems. There is also a discussion of various imperfections of the interaction between demand and supply labor, resulting in relative wage distortions and mismatches between demand and supply for labor.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

labor turnover costs

insider-outsider relations

unemployment

Economics

Nationalekonomi

Publication and Content Type

vet (subject category)

rap (subject category)