Unemployment may depend on equilibrium in other markets than the labor markets. Thispaper adresses this old idea by introducing search frictions on several markets: in a model ofcredit and labor market imperfections as in Wasmer and Weil (2004), I further introducesearch on the goods market. The...

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...