Standard macroeconomic models underpredict the volatility of unemployment fluctuations. A common solution is to assume … jobs. This form of wage rigidity does not affect job creation and thus cannot explain the unemployment volatility puzzle …

money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal … monetary growth rate decreases with the workers' bargaining power, the level of unemployment benefits and the payroll tax rate …. -- inflation ; unemployment ; search-matching ; Friedman rule …

suggest that a more progressive tax schedule reduces the unemployment rate and increases the employment rate. These findings …

We investigate unemployment due to mismatch in the US over the past three decades. We propose an accounting framework … that allows us to estimate the overall amount of mismatch unemployment as well as the contribution of the frictions that … caused the mismatch. Mismatch is quantitatively important for unemployment and the cyclical behavior of mismatch unemployment …

We propose a canonical model of optimal nonlinear redistributive taxation with matching unemployment. In our model … efficient values, at the optimum gross wages and unemployment are lower. Average tax rates are moreover increasing in wages. The … robustness of these properties is also discussed. -- Optimal income taxation ; unemployment ; matching …

levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor … demand and wages. Compared to their efficient values, gross wages, unemployment and participation are lower. Average tax …