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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 that...
Persistent link: https://www.econbiz.de/10010371904
and 'services' are produced both in the market and within the households. We use the model to examine how unemployment and … services reduces unemployment whereas a tax cut on goods has no effect. A reform involving tax differentiation, with lower …
Persistent link: https://www.econbiz.de/10011408425
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 aggregate unemployment is a reflection of highly concentrated …
Persistent link: https://www.econbiz.de/10011507672
labor supply and equilibrium unemployment in representative agent models. The impact of tax policy on labor market … unemployment benefits. In non-competitive labor markets, employment declines if a higher tax burden makes the outside option (i ….e. unemployment) relatively more attractive. Marginal tax rates typically differ substantially across individuals. To explore the …
Persistent link: https://www.econbiz.de/10011509463
The Danish labour market has undergone a remarkable change during the 1990s with a reduction of the unemployment rate … unemployment insurance system. This paper offers an overview of the developments in the Danish labour market during the 1990s, and … reviews the major policy shifts, as well as possible explanations of the remarkable reduction in unemployment. …
Persistent link: https://www.econbiz.de/10011507864
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/10012162484
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/10011398419
How the internet affects job matching is not well understood due to a lack of data on job vacancies and quasi … unemployment-spell. Consequently, our calculations suggest that the steady-state unemployment rate fell by as much as one-fifth. …
Persistent link: https://www.econbiz.de/10012156373
the regional and skill dimension of mismatch unemployment, we find a substantial increase of mismatch unemployment for …
Persistent link: https://www.econbiz.de/10012514547
We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms …-over effects of labor market institutions ; unemployment ; international trade ; search frictions ; heterogeneous firms …
Persistent link: https://www.econbiz.de/10003887183