market generate unemployment. Workers differ in productivity. The government does not observe workers' productivity but only …

unemployment also constitutes an incentive to implement a tax on outsourcing. Without a direct instrument for taxing outsourcing …

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 …

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 …

, profit sharing, and equilibrium unemployment when profit sharing is also a part of a compensation scheme in all industries … sharing. For equilibrium unemployment, we find that if there is also profit sharing in other industries, the effects of … outsourcing and profit sharing on the unemployment rate is ambiguous both in the committed and flexible case …

unemployment. Finally, we characterize the optimal production mode and show that stronger labour market imperfections lead to a …

We evaluate the effects of outsourcing and wage solidarity on wage formation and equilibrium unemployment in a … magnify, and not dampen, this tendency. Further, higher outsourcing will increase equilibrium unemployment among the high … unemployment under the reasonable condition that the proportion of high-skilled workers is sufficiently low …

partially controllable one (based on family composition, immigration status, unemployment and education level). We also estimate …