We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment … reduce equilibrium unemployment of low-skilled workers both in the presence and absence of labor taxation. In the presence of … outsourcing, wage tax, tax exemption and payroll tax have an ambiguous effect on equilibrium unemployment. Increasing the degree …

minimum-wage increase raises involuntary unemployment, but also raises skill formation as some individuals avoid unemployment … skill formation outweigh both the public revenue losses from additional unemployment and the utility losses of inefficient … the revenue losses from higher unemployment. We write this condition in terms of measurable sufficient statistics. Our …

We investigate experimentally the economic effects of wage taxation to finance unemployment benefits for a closed … the dynamic interaction between the wage tax and unemployment. (ii) Employment is boosted by budget deficits but …

local labour market is in close proximity of other labour markets, a local shock that increases unemployment may not lead to … lower pay rates if employers fear outward migration of their workers. Hence, the unemployment elasticity of pay will be …

We analyse the determinants of unemployment persistence in four OECDcountries byestimating a structural Bayesian VAR … with an informative priorbased on an insiders/outsiders model. We explicitly insert unemployment ben-efits and labour taxes … shocks play adominant role in explaining unemployment also in the medium-run. Moreoverreal wages have low sensitivity to …