model framework to resolve that puzzle. Our efficiency wage model emphasizes the importance of the local unemployment rate … that nonzero steady involuntary unemployment at equilibrium may coexist with an efficiency wage that stays below the market …

employment status affects both the level and the persistence of unemployment and numerically that these effects are substantial … to explain the high and persistent European unemployment. …

that all the shortrun fluctuations automatically turn into long-run changes in the unemployment rate. We assert the …

services are produced both in the market and within the households. We use the model to examine how unemployment and welfare … reduces unemployment whereas a tax cut on goods has no effect. A reform involving tax differentiation, with lower taxes on …

Conventional models of equilibrium unemployment typically imply that proportional taxes on labor earnings are neutral … with respect to unemployment as long as the tax does not affect the replacement rate provided by unemployment insurance, i ….e., unemployment benefits relative to after-tax earnings. When home production is an option, the conventional results may no longer …

We examine the relationship between unemployment benefits and unemployment using Swedish regional data. To estimate the … effect of an increase in unemployment insurance (UI) on unemployment we exploit the ceiling on UI benefits. The benefit … find fairly robust evidence suggesting that the actual generosity of UI does matter for regional unemployment. Increases in …

. Understanding the interaction between income support systems (such as unemployment benefits, social assistance, early retirement and …. The German labor market has been plagued by high and persistent unemployment in the last two decades in combination with a …