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 …

This paper estimates the causal effect of long-term unemployment on wages. Job search theory implies that if … Unemployment Insurance (UI) extensions do not affect wages conditional on the month of unemployment exit, then reservation wages do … not bind on average. Then, UI extensions affect mean wages only through unemployment durations and are valid instrumental …

The job finding rate of Unemployment Insurance (UI) recipients declines in the initial months of unemployment and then … effort. The panel structure allows us to observe how search effort evolves within individual over the unemployment spell. We …

A large literature has documented that the unemployment duration of unemployed individuals increases with the … generosity of the unemployment insurance (UI) system, which has been interpreted as the disincentive effect of UI benefits …