Income Tax (NIT) at the bottom of the income distribution, in the presence of unemployment and wage responses to taxation … that incorporates unemployment and endogenous wages. This formula nests a broad variety of structures of the labor market …, such as competitive models with fixed or flexible wages and models with matching frictions. Our results show that the …

: vocational training, vocational training combined with matching youth to firms, and matching only. Training is offered in sectors … with high quality firms. The matching intervention assigns workers for interviews with such firms. At baseline, unskilled … firms. However, youth additionally offered matching become discouraged because call back rates from firm owners are far …

employment is the efficient unemployment rate, u*. We define u* as the unemployment rate that minimizes the nonproductive use of …). Accordingly, the efficient unemployment rate is the geometric average of the unemployment and vacancy rates: u* = √uv. We compute …

This study documents how job seekers update perceived job-finding prospects by unemployment duration and by learning … about aggregate unemployment. We find that job seekers perceive an 18% decline in their job-finding probability for each … additional month of unemployment, but perceive a higher job-finding probability when the aggregate unemployment rate is …