Tehran Institute for Advanced Studies (TEIAS)

/ What Determines Unemployment: Low Productivity or High Outside Options? __ Saman Darougheh


What Determines Unemployment: Low Productivity or High Outside Options?

TeIAS Seminar - Saman Daroughe

December 23, 2023
(2 Dey, 1402)



In-person seminar: Room 3005, Daneshvar Building, Khatam University.
This event will also be live-streamed. Link will be provided to registrants.

Registration Deadline

December 22, 2023

You may need a VPN to start the talk.


Saman Darougheh

Researcher at the Danish Central Bank


High unemployment risk can be due to low productivity or high outside options to employment (such as high unemployment benefits). I show in a theoretical setting that the determinant of unemployment risk matters for the cost of unemployment and optimal social security (exemplified in unemployment insurance). In Denmark, unemployment risk is very heterogeneous in the cross section: 15% of the Danish labor force – “marginal workers” – account for 60% of unemployment. Using administrative records, I provide evidence suggesting that marginal workers differ from the majority of the population by both having worse outside options and being less productive. Preliminary: the calibrated model – which is work in progress – suggests an increase in unemployment insurance relative to the status quo.



Saman is a researcher at the Danish central bank and works on topics in macroeconomics, labor economics, and search theory. His research relies on clear micro foundations to build macroeconomic models that are connected to empirical estimates from micro-data.