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The path breaking work of Card and Krueger (1993), showing higher minimum wage can increase employment turned the age-old conventional wisdom on its head. This paper demonstrates that this apparently paradoxical result is perfectly plausible in a competitive general equilibrium production...
Persistent link: https://www.econbiz.de/10012835193
Unemployment is at a low and stable level in Denmark. This achievement is often attributed to the so-called flexicurity … model may have, a low and stable unemployment rate is not automatically among them since the basic flexicurity properties … were also in place during the 1970s and 1980s where high and persistent unemployment was prevalent. Labour market …
Persistent link: https://www.econbiz.de/10013316818
This paper sheds new light on the effects of the minimum wage on employment from a two-sided theoretical perspective, in which firms’ job offer and workers’ job acceptance decisions are disentangled. Minimum wages reduce job offer incentives and increase job acceptance incentives. We show...
Persistent link: https://www.econbiz.de/10010877633
to lower unemployment levels than predicted by the standard labour market model with heterogeneous labour and symmetric …
Persistent link: https://www.econbiz.de/10005000388
services are produced both in the market and within the households. We use the model to examine how unemployment and welfare … reduces unemployment whereas a tax cut on goods has no effect. A reform involving tax differentiation, with lower taxes on …
Persistent link: https://www.econbiz.de/10005406341
Conventional models of equilibrium unemployment typically imply that proportional taxes on labor earnings are neutral … with respect to unemployment as long as the tax does not affect the replacement rate provided by unemployment insurance, i ….e., unemployment benefits relative to after-tax earnings. When home production is an option, the conventional results may no longer …
Persistent link: https://www.econbiz.de/10005406344
We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms …
Persistent link: https://www.econbiz.de/10013150804
This article examines unemployment disparities and efficiency in a densely populated economy with two job centers and … workers distributed between them. We introduce commuting costs and search-matching frictions to deal with the spatial mismatch … changes in the workforce distribution have non-negligible effects on unemployment rates, wages, and net output, but cannot be …
Persistent link: https://www.econbiz.de/10013014200
We show that in a Ricardo-Viner-type trade model with unemployment due to search and matching the productivity effect …
Persistent link: https://www.econbiz.de/10013144365
Combining a spatial equilibrium model with a matching unemployment model, this paper analyzes the regional quality of … life when wages, rents, and unemployment risk compensate for local amenities and disamenities. In particular, the paper … shows for quasi-linear utility that the effects of any amenity on wages and unemployment rates are of opposite sign …
Persistent link: https://www.econbiz.de/10010546957