of in-work benefits on search intensity, participation, employment, and unemployment, compared to a framework in which … wages are fixed. We also account for the financing of these benefits and determine the level of benefits necessary to …

its strength and weakness, discuss its connections with theory, and draw out potential policy implications of its findings …

We derive a sufficient statistics optimal 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 distribution. The sufficient statistics are … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …

Wages are only mildly cyclical, implying that shocks to labour demand have a larger short-run impact on unemployment … rather than wages, at odds with the quantitative predictions of the canonical search model – even if wages are only … reservation wages, and consider an alternative reservation wage model based on reference dependence in job search. This extension …

impact on aggregate labor market performance and unemployment. In a two-sector labor market model with free mobility of labor …, an increase in government wages or benefits reduces private sector employment, and government employment is not an …

This paper examines the effect of skill-biased technological change on the structure of wages, the composition of … employment and the level of unemployment in a two-sector economy with a heterogenous work force. Efficiency wage considerations …