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 …

and matching unemployment. We show that trend growth in itself does not generate a trade-off for the monetary authority …

unemployment. The optimal policy response to the efficient labor market shock changes when real wages are sticky but remains …

real wage rigidities. -- Monetary policy ; real wage rigidity ; labor turnover costs ; unemployment ; tradeoff …

. We use a New Keynesian model with unemployment to predict the effects of different labor market institutions on …This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone …, but stands in stark contrast to the search and matching model. While labor market institutions have a large effect on …

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 …