This paper estimates the causal effect of long-term unemployment on wages. Job search theory implies that if … Unemployment Insurance (UI) extensions do not affect wages conditional on the month of unemployment exit, then reservation wages do … not bind on average. Then, UI extensions affect mean wages only through unemployment durations and are valid instrumental …

long-run loss is due to a decline in wages. We also show that even the generous German unemployment insurance system … Displacement ; Mass-Layoffs ; Unemployment Insurance System …

We derive a sufficient statistics optimal income tax formula in a general model that incorporates unemployment and … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …