) nonparticipation and (involuntary) unemployment are endogenous. The optimal employment tax rate is given by an inverse employment …This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework where (voluntary … elasticity rule. This rule depends on the global response of the employment rate, which depends not only on the participation …

determine employment. Unions raise the efficiency costs of income redistribution, because unemployment benefits and income taxes …This paper extends the Diamond (1980) model with labor unions to study optimal income taxation and to analyze whether … raise wage demands and thereby generate involuntary unemployment. Optimal unemployment benefits and optimal income taxes are …

regular employment and results in even larger employment effects. Applying the subsidy scheme to the low-skill labor market in …In this paper, we attempt to renew the interest in marginal employment subsidies. Such subsidies are paid only for a … firm's additional employment exceeding some reference level and create larger employment stimuli at lower fiscal costs than …

explanation for several seemingly unrelated facts about employment growth in macro and micro data. In particular, they generate … of employment growth to TFP shocks estimated from Census data induce significant skewness, movements in volatility and …

The distribution of unemployment duration in our equilibrium matching model with spell-dependent unemployment benefits … aggregate unemployment rate. Structural estimation using a German micro-data set (SOEP) allows us to discuss the effects of a … recent unemployment benefit reform (Hartz IV). The reform reduced unemployment by only 0.3%. Contrary to general beliefs, we …

How skills acquired in vocational education and training (VET) affect wages and employment is not clear. We develop and … skills, while firms require and value different combinations of these skills. Assuming that match productivity exhibits … worker-job complementarity, we estimate how interpersonal, cognitive and manual skills map into job offers, unemployment and …

employment effects. We quantify these effects for Germany. Following Borjas (2003), we estimate a structural model of labor … unemployment which we model in a price-wage-setting framework. Simulating a counterfactual scenario without restrictions for … migration from new EU members countries, we find moderate negative wage effects, combined with increased unemployment for some …

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

various performance indicators (unemployment, long-term unemployment, employment, activity rate). Our results confirm that … high taxes increase unemployment, while active labour market policies tend to reduce it. We also show that stricter … employment protection, higher taxes and larger economic burden represented by the minimum wage decrease employment and activity …

productivity shocks for new contacts. Large negative aggregate shocks move the hiring cutoff point into a part of the idiosyncratic … density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …