This paper focuses on changes in the Italian labour market over the decade 1993-2003. We estimate both aggregate transition matrices and micro-level multinomial logistic regression models to analyse flows between labour market states and their determinants. We aim to assess whether labour market...

In this paper we adopt a three-state representation of the labour market (employment, unemployment, and inactivity). Using individual -level data from EU-SILC (European Union - Statistics on Income and Living Conditions) survey from three countries (France, Italy, Spain), we analyze the...

This paper offers an alternative theory for the increase in unemployment and wage inequality experienced in the United States over the past two decades. In my model firms decide the composition of jobs and then match with skilled and unskilled workers. The demand for skills is endogenous and an...

This paper characterizes optimal non-linear income taxation in an economy with a continuum of unobservable productivity levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor demand and wages. Compared to the laissez-faire,...

This paper examines the effect of taxes on the individuals' choices of educational direction, and thus on the economy.s skill composition. A proportional labour tax induces too many workers with high innate ability to choose an educational type associated with high consumption value and low...