. Furthermore, if the presence of skill-biased technological shocks increase unemployment, this may explain why the market it …-between subsidizing education and thereby reducing unemployment and optimizing welfare may be eliminated. We analyse this issue in a …

unemployment. A higher audit rate has an ambiguous impact on unemployment, and may actually increase the size of the underground …

higher punishment rates and a higher audit rate on labor market performance, and we find that a higher punishment rate (i … both sectors, and (iii) reduces the unemployment rate. The effect of a higher audit rate is less clear. We find that a … ambiguous impact on unemployment and real wages. …