by investments in R&D performed in the high-wage sector. Unemployment is determined by the costs and benefits of waiting … for a high-paid job. The wage structure, growth, and unemployment are shown to depend on the way effort is extracted. …

decreasing in the substitutability of worker types. This cost of search is then decomposed into three components: unemployment … workers being more choosy. The resulting equilibrium is not efficient. Unemployment benefits can reduce the loss by serving as …

This paper studies the relationship between the change in the unemployment rate and output growth using an approach …

minimum-wage increase raises involuntary unemployment, but also raises skill formation as some individuals avoid unemployment … skill formation outweigh both the public revenue losses from additional unemployment and the utility losses of inefficient … the revenue losses from higher unemployment. We write this condition in terms of measurable sufficient statistics. Our …

We investigate experimentally the economic effects of wage taxation to finance unemployment benefits for a closed … the dynamic interaction between the wage tax and unemployment. (ii) Employment is boosted by budget deficits but …