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 …

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 …

relative wage and unemployment differentials for various labour market defining characteristics. A simultaneous increase in the … relative wage and the unemployment likelihood is defined as a relative wage rigidity dynamic for a labour market characteristic …

It is commonplace in the debate on Germany’s labor market problems to argue that high unemployment and low wage … dispersion are related. This paper analyses the relationship between unemployment and residual wage dispersion for individuals … with comparable attributes. In the conventional neoclassical point of view, wages are determined by the marginal product of …

seniority wages. This paper uses linked employeremployee data, aggregates individual seniority wages to the establishment level … paper finds that establishments with stronger seniority wages have a higher tenure but hire less older employees. …