Frictions and institutions
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About This Book
The book introduces the reader to the now largely standard Mortensen-Pissarides (1994) matching model of the labor market, and then builds a number of applications of this model that allow us to study the distributional effects of various labor market policies and institutions. For each of those institutions, the effect on the welfare of different kinds of workers is computed. The institutions that are studied are in turn : employment protection, unemployment benefits, and active labor market policies.
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