minimum-wage increase raises involuntary unemployment, but also raises skill formation as some individuals avoid unemployment … skill formation outweigh both the public revenue losses from additional unemployment and the utility losses of inefficient … the revenue losses from higher unemployment. We write this condition in terms of measurable sufficient statistics. Our …

We investigate experimentally the economic effects of wage taxation to finance unemployment benefits for a closed … the dynamic interaction between the wage tax and unemployment. (ii) Employment is boosted by budget deficits but …

local labour market is in close proximity of other labour markets, a local shock that increases unemployment may not lead to … lower pay rates if employers fear outward migration of their workers. Hence, the unemployment elasticity of pay will be …

alternative monetary rules on unemployment dynamics in the euro area and the US. We use the inflation forecasts of 8 competing …

paper, we present a model with equilibrium unemployment which has three distinctive properties. First, using a search and …, which allows the model to reproduce the fluctuations of unemployment over the business cycle. And third, the model implies a … reasonable elasticity of steady state unemployment with respect to changes in benefits. The calibration of the model implies low …

We analyse the determinants of unemployment persistence in four OECDcountries byestimating a structural Bayesian VAR … with an informative priorbased on an insiders/outsiders model. We explicitly insert unemployment ben-efits and labour taxes … shocks play adominant role in explaining unemployment also in the medium-run. Moreoverreal wages have low sensitivity to …

deviate from the strict inflation targeting since the policy maker faces a typical unemployment/inflation trade-off. In this … (hence the output gap) since the latter also depends on the evolution of unemployment. The matching frictions add a … matches. Hence optimal monetary policy features unemployment targeting along with inflation targeting …