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 …

major challenges for policy makers in Finland. The recession of the early 1990s showed that high unemployment can leave long …, greater flexibility in wage setting, ensuring earlier activation of unemployed and reforming unemployment and social benefits … to better support work incentives. Finland has an unusual combination of elevated unemployment replacement rates and late …

This paper deals with the effects of labour market institutions on unemployment in a panel of 19 OECD countries for the … effects of institutions on unemployment. Our main results are that on the average a tighter employment protection, a higher … of the unemployment rate. Our novel contribution is the estimation of panel models where we allow for heterogeneous …

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 …