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Monitoring job search effort with hyperbolic time preferences and non-compliance: A welfare analysis

Cockx, Bart; Ghirelli, Corinna; Van der Linden, Bruno - 2013

This paper develops a partial equilibrium job search model to study the behavioral and welfare implications of an Unemployment Insurance (UI) scheme in which job search requirements are imposed on UI recipients with hyperbolic preferences. We show that, if the search requirements are well...

Persistent link: https://www.econbiz.de/10010292795

Taxing education in Ramsey's tradition

Richter, Wolfram F. - 2009

Assuming a two-period model with endogenous choices of labour, education, and saving, it is shown to be second …-best efficient to deviate from Ramsey's Rule and to distort qualified labour less than nonqualified labour. The result holds for …

Persistent link: https://www.econbiz.de/10010264588

How to Measure the Tax Burden on Labour at the Macro-Level?

Sturm, Jan-Egbert; Volkerink, Bjørn - 2003

The purpose of this paper is threefold. First, we survey the way in which the tax burden on labour has been proxied for … extent the conclusions of some studies change if some alternative indicator for the tax burden on labour is employed. We … indicator for the tax burden on labour is also shown to affect the conclusions of some well-known empirical models. …

Persistent link: https://www.econbiz.de/10010315810

Is a Minimum Wage an Appropriate Instrument for Redistribution?

Gerritsen, Aart; Jacobs, Bas - 2014

We analyze the redistributive (dis)advantages of a minimum wage over income taxation in competitive labor markets. A minimum wage causes more unemployment, but also leads to more skill formation as unemployment is concentrated on low-skilled workers. A simple condition based on three sufficient...

Persistent link: https://www.econbiz.de/10010333378

Deserving Poor and the Desirability of Minimum Wage Rules

Blumkin, Tomer; Danziger, Leif - 2014

In this paper we provide a novel justification for the use of minimum wage rules to supplement the optimal tax-and-transfer system. We demonstrate that if labor supply decisions are concentrated along the intensive margin and employment is efficiently rationed, a minimum wage rule can be...

Persistent link: https://www.econbiz.de/10010352385

General Equilibrium with Contracts

Kwon, Suehyun - 2016

This paper studies general equilibrium when workers in the economy are also consumers of final goods. Once a firm and a worker are matched, there is a standard moral hazard problem. However, the firm’s profit depends on the price of the good the worker produces, and the price is determined by...

Persistent link: https://www.econbiz.de/10011584962

Earnings Inequality and the Minimum Wage: Evidence from Brazil

Engbom, Niklas; Moser, Christian - 2017

We quantify the effect of a minimum wage on compression throughout the earnings distribution. Using the case of Brazil, which experienced a large decrease in earnings inequality while its real minimum wage increased from 1996-2012, we document that the inequality decrease was bottom-driven yet...

Persistent link: https://www.econbiz.de/10011657114

Labor unions, globalization, and mercantilism

Grieben, Wolf-Heimo; Sener, Fuat - 2009

We analyze the growth and welfare effects of globalization in a dynamic Schumpeterian North-South product-cycle model. Economic growth is driven by R&D activities of Northern entrepreneurs. Top Northern production technologies are imitated by the South. In the North, there is wage bargaining...

Persistent link: https://www.econbiz.de/10010265999

Wage and employment effects of non-binding minimum wages

Dittrich, Marcus; Knabe, Andreas - 2010

Common wisdom holds that the introduction of a non-binding minimum wage is irrelevant for actual wages and employment. Empirical and experimental research, however, has shown that the introduction of a minimum wage can raise even those wages that were already above the new minimum wage. In this...

Persistent link: https://www.econbiz.de/10010270871

Noncompliance and the effects of the minimum wage on hours and welfare in competitive labor markets

Danziger, Leif - 2009

This paper shows that increases in the minimum wage rate can have ambiguous effects on the working hours and welfare of employed workers in competitive labor markets. The reason is that employers may not comply with the minimum wage legislation and instead pay a lower subminimum wage rate. If...

Persistent link: https://www.econbiz.de/10010272316