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This paper bolsters Prescott's (2004) claim that high taxes are responsible for lacklustre labor market performance in continental European countries. We develop a lifecycle model with endogenous skill formation, endogenous labor supply, and endogenous retirement. Labor taxation distorts not...
Persistent link: https://www.econbiz.de/10012772137
unemployment insurance scheme. We show that such immigration can create a negative immigration surplus due to adverse effects on …
Persistent link: https://www.econbiz.de/10012770182
high-wage country with an imperfectly competitive labour market so that outsourcing reduces equilibrium unemployment …
Persistent link: https://www.econbiz.de/10012777827
It has been noted that the search and matching model cannot account for the observed unemployment fluctuations. Gertler …
Persistent link: https://www.econbiz.de/10012951773
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 …
Persistent link: https://www.econbiz.de/10012770494
, 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 …
Persistent link: https://www.econbiz.de/10013316651
receive higher wages than employed singles. The model is applied to a welfare analysis of alternative unemployment insurance …
Persistent link: https://www.econbiz.de/10008596606
on how wages and unemployment rates adjust to economic integration. We distinguish between short-run effects for a given …
Persistent link: https://www.econbiz.de/10005094327
This paper explores the existence of downward real wage rigidity (DRWR) in 19 OECD countries, over the period 1973-1999, using data for hourly nominal earnings at industry level. Based on a nonparametric statistical method, which allows for country and year specific variation in both the median...
Persistent link: https://www.econbiz.de/10012753919
A number of recent studies have documented extensive downward nominal wage rigidity (DNWR) for job stayers in many OECD countries. However, DNWR for individual workers may induce downward rigidity or "a floor" for the aggregate wage growth at positive or negative levels. Aggregate wage growth...
Persistent link: https://www.econbiz.de/10013316399