In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We … imposed on the set of available taxes and on the mobility of firms. As a general result, the welfare loss from labour market … imperfections increases when tax bases become internationally mobile, which suggests an increasing relevance of domestic labour-market …

In order to alleviate unemployment it is often recommended to reduce social security contributions (SSC) and to … compensate for the ensuing loss in revenues by a rise in the value-added tax (VAT). Assuming unemployment to be caused by … efficiency wages, it is shown that a balanced-budget shift from a payroll tax to a VAT will increase employment if the rise in …

Consider a labour market with heterogeneous workers. Firms recruit workers by fixing a hiring standard and a wage offer … a result, an efficiency wage effect is obtained. An equilibrium emerges which does not clear the labour market. The wage …

workers are (i.e. the more their wages rise with employment duration), the more effective will unemployment vouchers be …The paper examines the relative effectiveness of two policy proposals in reducing unemployment and working poverty …: unemployment vouchers and low-wage subsidies. The unemployment vouchers are targeted exclusively at the unemployed (especially the …

costs influence insider wages and outsiders’ opportunities and how these costs affect employment and unemployment. We also … address the more complex, and open, question of how employment and unemployment move through time, in response to labor market …This article is an idiosyncratic survey of the insider-outsider theory, describing the vision underlying the theory …

Women without work after childbirth are at risk of losing their connection to the labor market. However, they may …

questions in a structural framework, using data on individual labor market transitions and durations, wages, and individual … dynamic optimization theory. We develop a general framework for the labor market where the search for a job involves dynamic …This paper surveys the existing empirical research that uses search theory to empirically analyze labor supply …

wage affects wages even though, after imposition, the lowest wage in the market exceeds the minimum wage. The model has …

We survey the recent literature on the effects of active labor market policies on individual labor market outcomes like …

stability of educational wage premia was justified by market forces. However, relative wages did not respond to negative net … the hypothesis that a rigid wage structure has been responsible for rising low-skilled unemployment, I propose a …