The aim of this paper is to examine, both at partial and general equilibrium, the consequences of work sharing policies, when the wages, the length of the working time and the participation rates are endogenous, in an economy where workers get utility from leisure. It is shown that the effects...

We study the impact of graduating in a recession in Flanders (Belgium), i.e. in a rigid labor market. In the presence of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working time and earnings by about 4.5% up to twelve years after...

L’objectif de ce texte est de questionner les fondements normatifs des politiques d’activation, dans leur version Making Work Pay, afin de souligner les «préférences révélées » des décideurs politiques. Pour cela, nous montrons comment les théories de la justice de Rawls, Dworkin et...

We explain the positive correlation between union power and tax progressivity from a normative point of view by integrating labour market frictions and union power in an optimal taxation framework. We find that unions and redistributive taxation are complementary in the sense that they both...

This paper characterizes optimal non-linear income taxation in an economy with a continuum of unobservable productivity levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor demand and wages. Compared to the laissez-faire,...

This paper compares the implications of different interest rate models for valuing the so-called OLOs (Belgian coupons bonds). The prices of these bonds implied by some well-known one-factor models are compared to the actual prices observed on the market. Our finding suggest that these interest...