response of unemployment in our incentive pay model calibrated to strongly procyclical wages. …We introduce dynamic incentive contracts into a model of inflation and unemployment dynamics. Our main result is that … wage cyclicality from incentives neither affects the slope of the Phillips curve for prices nor dampens unemployment …

risk of unemployment two years after the treatment. However, the effects are heterogeneous as to gender, age, education …

We derive a sufficient statistics optimal income tax formula in a general model that incorporates unemployment and … endogenous wages, to study the shape of the tax and transfer system at the bottom of the income distribution. The sufficient … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …

unemployment and wages in aggregate analysis. We do find, however, evidence of distributional effects when accounting for human …The vast literature on the effects of immigration on wages and employment is plagued by likely endogeneity and …

expectations and wages, and a significantly positive relationship between optimistic bias in job finding expectations and … search and matching model of the labor market. Removing the biases could substantially increase wages and expected lifetime …