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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 …
Persistent link: https://www.econbiz.de/10003974164
the unemployment rate and increases the employment rate. From a theoretical point of view, higher progressivity induces a … average wage, we show that a more progressive taxation reduces the unemployment rate and increases the employment rate. These …
Persistent link: https://www.econbiz.de/10009772806
This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. In a calibrated non-Ramsey decentralized equilibrium, labor market volatility is inefficient. Keeping fixed the structural parameters, the Ramsey government achieves efficient labor market...
Persistent link: https://www.econbiz.de/10011864654
producing employment growth and in reducing unemployment than most continental-European OECD-countries. It is argued that the …
Persistent link: https://www.econbiz.de/10011398923
Using an intertemporal model of saving and capital accumulation we demonstrate that it is impossible for any binding minimum wage to increase the after-tax incomes of workers if the production function is Cobb-Douglas with constant returns to scale, or if there are no differences in ability...
Persistent link: https://www.econbiz.de/10010358969
density function with higher density and thereby generate large, asymmetric job-finding rate and unemployment reactions. Our …
Persistent link: https://www.econbiz.de/10011444082
Using an intertemporal model of saving and capital accumulation with two types of agents (workers and capitalists) we demonstrate that it is impossible for any binding minimum wage to increase the after-tax incomes of workers if the production function is Cobb-Douglas with constant returns to...
Persistent link: https://www.econbiz.de/10011481224
This paper analyzes long run outcomes resulting from adopting a binding minimum wage in a neoclassical model with perfectly competitive labour markets and capital accumulation. The model distinguishes between workers of heterogeneous ability and capitalists who do all the saving, and it entails...
Persistent link: https://www.econbiz.de/10010428828
We explain the public's support for the minimum wage (MW) institution despite economists' warnings that the MW is a "blunt instrument" for redistribution. To do so we build a model in which workers are heterogeneous in ability, and the government engages in redistribution through the public...
Persistent link: https://www.econbiz.de/10012229263
unemployment benefits; we find that the MW is preferred by the majority of workers (even when the unemployed receive very generous … unemployment benefits). In the second model, the government engages in redistribution through the public provision of private goods … given generosity of the unemployment benefit scheme, the maximum, politically viable, MW is lower than in the absence of in …
Persistent link: https://www.econbiz.de/10011669528