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 …

predictions of the model change very little, but the welfare costs of unemployment are much larger because unemployment risk is … distributed unequally across workers. As a result, optimal unemployment insurance may be higher and welfare is lower if hiring is … selective. -- labor market models ; welfare ; optimal unemployment insurance …

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

because minimum wage increases unemployment, hence the marginal cost of redistribution is higher which gives a pretext for … high skilled workers to moderate low skilled workers claim for income redistribution. -- unemployment ; political economics …

with less perverse effect on unemployment. Time inconsistency is more likely due to lack of credibility than to the short … between government and social partners. -- unemployment ; inequality ; wage rigidity ; time inconsistency …

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 …

We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …