We derive a sufficient statistics optimal income tax formula in a general model that incorporates unemployment and … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …

taxation. In addition, the appearance of equilibrium unemployment also provides an incentive for the government to directly tax …

, profit sharing, and equilibrium unemployment depending on whether in other industries profit share is or is not a part of the …. Under flexible profit sharing wage is higher if optimal profit share is small enough. For equilibrium unemployment, we find … that if there is no profit sharing in other industries, outsourcing will decrease the unemployment rate. But if profit …

high-wage country with an imperfectly competitive labour market so that outsourcing reduces equilibrium unemployment …

It has been noted that the search and matching model cannot account for the observed unemployment fluctuations. Gertler …

outsourcing cost, profit sharing and equilibrium unemployment, when profit sharing is also a part of the compensation schemes in … wage effect. For equilibrium unemployment the effects of outsourcing cost and profit sharing are ambiguous both in case of … the absence or presence of outsourcing and in this case lower outsourcing cost will decrease unemployment …