This paper estimates the effects on earnings of 'gap years' between high school and university enrollment. The effect is estimated by means of standard earnings functions augmented to account for gap years and a rich set of control variables using administrative Swedish data. We find that...

The paper develops a two-sector general equilibrium search model where 'goods' are produced exclusively in the market and 'services' are produced both in the market and within the households. We use the model to examine how unemployment and welfare are affected by labor taxes in general and...

This paper analyzes union behavior in a model w ith uncertainty aboutaggregate labor demand. When uncertainty is resolved, the labor market may be in excess demand or excess supply at the preset contractual wage. Wage drift occurs if excess demand is realized and the union's wage demand takes...

Sectoral tax differentiation has in recent years appeared on the agenda in European policy discussions concerning unemployment. The member countries of the European Union are allowed to reduce the value added tax rates on goods and services that are particularly labour intensive and price...