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We show that a minimum wage introduced in the presence of asymmetric information about worker productivities will lead to lower unemployment levels than predicted by the standard labour market model with heterogeneous labour and symmetric information. -- minimum wages ; unemployment ; asymmetric...
Persistent link: https://www.econbiz.de/10003833327
The risk of investment in schooling has largely been ignored. We assess the variance in the rate of return by surveying the international empirical literature from this fresh perspective and by simulating risky earnings profiles in alternative options, choosing parameters on basis of the very...
Persistent link: https://www.econbiz.de/10011450523
In this model of education, where individuals are exposed both to educational risk and to wage risk within the skilled sector, successful graduation depends both on individual effort to study and on public resources. We show that insuring the present risks is a dichotomic task: Wage risk is...
Persistent link: https://www.econbiz.de/10003806025
In a model with ex-ante homogenous households, earnings risk and a general earnings function, we derive the optimal linear labor tax rate and optimal linear education subsidies. The optimal income tax trades off social insurance against incentives to work and to invest in human capital....
Persistent link: https://www.econbiz.de/10003806742
With varying aptitudes in different occupations, individuals typically maximize income by specializing in one occupation which promises the highest income. Due to numerous labor market imperfections and uncertainties, the choice of best occupation is accomplished with only partial success. We...
Persistent link: https://www.econbiz.de/10011506232
A novel method is applied to evaluate the effect of capital constraints on entrepreneurial performance on a panel of 1,000 Dutch entrepreneurs. We find that initial capital constraints hinder entrepreneurs in their performance, even when we control for various human capital and other factors...
Persistent link: https://www.econbiz.de/10011506454
This paper reviews the Italian unemployment experience, analyzing in particular the time-series behavior of unemployment rates along the path that brought Italy into Europe s Economic and Monetary Union, and their disaggregated structure across geographical and demographic dimensions. High...
Persistent link: https://www.econbiz.de/10011507672
In exploring the impact of tax policy on labor-market performance, the paper first investigates how tax reform impacts labor supply and equilibrium unemployment in representative agent models. The impact of tax policy on labor market performance depends importantly on various other labor-market...
Persistent link: https://www.econbiz.de/10011509463
In OECD countries watching television is by far the most time-consuming form of leisure. Surprisingly, television viewing is positively correlated with work hours across countries. A simple model based on the notion of aggregate strategic complementarities in social leisure is developed which...
Persistent link: https://www.econbiz.de/10011514093
The paper studies the determinants of income distribution and growth in an overlapping generations economy with … an endogenous growth model. First, we explore the effects of technological improvements in the human capital process … progress on growth and relate these results to the income distribution inequality. Third, we provide numerical simulations to …
Persistent link: https://www.econbiz.de/10011399283