This paper addresses the welfare implications of introducing workfare into unemployment benefit policy. We consider a population composed of employed and unemployed workers and of individuals who do not seek employment. Job search behavior is unobservable, which means that voluntarily unemployed...

This paper investigates the proposition that a progressive tax system contributes to wage moderation. We continue the work of Lockwood and Manning (1993), who considered macro date for the UK, by looking at Danish wage equations for different earnings levels. Our main conclusions are that...

This paper studies the impact of raiding opportunities in a competitive labor market where firms have complete information about the ability of employed workers but are incompletely informed regarding the ability of the unemployed. In equilibrium, some high-ability workers are involuntarily...