A significant fraction of the labor force consists of employed workers who are part-timeunemployed (underemployed) in the sense that they are unable to work as much as theyprefer. This paper develops a search and matching model to study the design of optimalunemployment insurance in an economy...

In-work benefits are becoming an increasingly relevant labour market policy, graduallyexpanding in scope and geographical coverage. This paper investigates the equilibriumimpact of in-work benefits and contrasts it with the traditional partial equilibrium analysis. Wefind under which conditions...

Payroll taxes represent a major distortionary influence of governments on labor markets. Thispaper examines the role of payroll taxation and the social safety net for cyclical fluctuations ina nonmonetary economy with labor market frictions and unemployment insurance, when thelatter is only...