utility. We show for a wage bargaining model that a stronger earningsrelationship of unemployment benefits may reduce wages …Evidently, the benefit-structure of the unemployment insurance has a significant influence onprofits and trade union … and increase employment. Thisraises the question as to how the benefit structure is determined in the political process... …

We offer a unified framework to analyze the determination of employment, employee effort, wages, profit-sharing and … capital structure when firms face stochastic revenue shocks. We apply a generalized Nash bargaining solution, which extends … the wage bargaining literature by incorporating efficiency wage considerations, profit-sharing and capital structure. The …

firing costs and unemployment benefits are independent of redundancy pay, employment and welfare will rise with redundancy … shown that a fixed payment will lower wages, leave employment and welfare unaffected if there are no wage-dependent taxes …, no additional firing costs and if unemployment benefits are not altered by redundancy payments. If payroll taxes exceed …

the share of the outsourced workforce is not too large, this wage-moderation effect on domestic employment outweighs the … direct substitution effect so that domestic employment increases in unionized firms as outsourcing costs fall. This does not … exemption and the unemployment benefit payments affect domestic wage setting in the same way as in the absence of outsourcing …

More progressive income taxes raise employment in models of imperfectly competitive labour markets. However, this … progressive taxes reduce profits. This induces firms to exit the market such that the positive employment effect can vanish in a … opportunities raise the likelihood of positive employment effects due to higher tax progressivity. …

We evaluate the effects of outsourcing and wage solidarity on wage formation andequilibrium unemployment in a …

The Finnish unemployment rose in the early 1990’s from three to eighteen percent in four years. Unemployment has then … this unforeseen increase in unemployment. We then discuss the role of labour market institutions in the adjustment process … that has brought unemployment back to ‘normal’ levels. We argue that these institutions cannot be blamed for the increase …

-selection constraint and the incentive to increase employment among the low-skilled reinforce each other in terms of marginal income … taxation. In addition, the appearance of equilibrium unemployment also provides an incentive for the government to directly tax … to less wage inequality and increased employment. …

In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We …