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We analyze to what extent skill heterogeneity in the labor market with different wage formation mechanisms can explain the features of the Spanish labor market. The model assumes two types of workers with differences in skills. Skilled labor sets wages in an efficiency way while unskilled labor...
Persistent link: https://www.econbiz.de/10004985274
This paper aims at explaining the dynamics of labor markets in Spain, especially the high persistence of unemployment …
Persistent link: https://www.econbiz.de/10004985001
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 …
Persistent link: https://www.econbiz.de/10011075075
unemployment insurance and lower levels of search intensity and output in the second setting. To decenralize these optima …-linear tax schedule and an appropriate level of unemployment benefits. According to the level of the bargaining power, taxation …
Persistent link: https://www.econbiz.de/10004985336
levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor … demand and wages. Compared to the laissez-faire, gross wages, unemployment and participation are lower. Average tax rates are …
Persistent link: https://www.econbiz.de/10004985344