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

minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low … gains of more skill formation outweigh the social welfare losses of increased unemployment. Using a highly conservative …

This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework where (voluntary …) nonparticipation and (involuntary) unemployment are endogenous. The optimal employment tax rate is given by an inverse employment …. For plausible values of the parameters, our matching environment induces much lower employment tax rates than the usual …

unemployment. Four main results are derived: (i) the optimal size of the welfare state depends on the degree of risk-aversion and … the unemployment rate as a measure of labor income risk. The unemployment rate partly reflects the country’s exposure to … globalization; (ii) corporate taxation and social insurance have equivalent effects on unemployment and outbound FDI; (iii) while an …

challenges the two basic functions of the welfare state, redistribution and social insurance when private unemployment insurance … markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk ofunskilled workers; (ii … welfare optimal redistribution and unemployment insurance policies. …

non-market activities. Search-matching frictions on the labor markets create unemployment. Wages, labor demand and …