the unemployment rate and increases the employment rate. From a theoretical point of view, higher progressivity induces a … average wage, we show that a more progressive taxation reduces the unemployment rate and increases the employment rate. These …

non-market activities. Search-matching frictions on the labor markets create unemployment. Wages, labor demand and … ; adverse selection ; random participation ; unemployment ; labor market frictions …

We derive a sufficient statistics optimal income tax formula in a general model that incorporates unemployment and … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …