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...

This paper documents a robust empirical regularity: in the long-run, higher trade openness iscausally associated to a lower structural rate of unemployment. We establish this fact using:(i) panel data from 20 OECD countries, (ii) cross-sectional data on a larger set of countries.The time...