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 …

for 19 OECD countries on unemployment, FDI, and labor market institutions. Results support the model in that net-FDI is … robustly associated with lower rates of aggregate unemployment. -- FDI ; search unemployment ; labor market institutions … global financial markets enables capital owners to invest abroad, thereby fostering unemployment at the extensive industry …

in German unemployment is fully explained by hysteresis. The Great Recession was well absorbed because both hysteresis … effects and structural unemployment were substantially reduced after institutional reforms. In contrast, U.S. unemployment did …

We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous … countercyclical unemployment, and is simultaneously consistent with procyclical reallocation, countercyclical separations and a … negatively-sloped Beveridge curve. Moreover, the model exhibits unemployment duration dependence, which (when calibrated to long …

In a multi-country general equilibrium economy with mobile capital and rigid-wage unemployment, countries may differ in … conditions under which - in contrast to free trade with undistorted labor markets - welfare declines and unemployment increases …