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This paper challenges the traditional view that unemployment is high because insiders determine the union wage. The … they experience relatively less unemployment. We assume that wages are determined by a monopoly union and further that a … of lower unemployment when insiders are decisive in the union than if outsiders were decisive in the union …
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To examine the macro economic effects of government tax and punishment policies, this paper develops a three-sector general quilibrium model featuring matching frictions, heterogenous abilities and an informal sector with tax evasion. The choice of education is determined endogenously. Job...
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educational type with high consumption value and low effort costs. This increases the skill mismatch and aggregate unemployment in …
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While examining the macroeconomic effects of government tax and punishment policies, this paper develops a three-sector general equilibrium model featuring matching frictions and worker-firm wage bargaining. Workers are assumed to differ in ability, and the choice of education is determined...
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