educational type with high consumption value and low effort costs. This increases the skill mismatch and aggregate unemployment in …

two-sector general equilibrium model featuring matching frictions and worker-firm wage bargaining. Workers search for jobs … unemployment. A higher audit rate has an ambiguous impact on unemployment, and may actually increase the size of the underground …

The paper develops a two-sector general equilibrium search model where goods are produced exclusively in the market and … services are produced both in the market and within the households. We use the model to examine how unemployment and welfare … are affected by labor taxes in general and sectoral tax differentiation in particular. We find that a tax cut on services …