We propose a canonical model of optimal nonlinear redistributive taxation with matching unemployment. In our model … efficient values, at the optimum gross wages and unemployment are lower. Average tax rates are moreover increasing in wages. The … robustness of these properties is also discussed. -- Optimal income taxation ; unemployment ; matching …

non-market activities. Search-matching frictions on the labor markets create unemployment. Wages, labor demand and … ; adverse selection ; random participation ; unemployment ; labor market frictions …

Unemployment Insurance (UI) scheme in which job search requirements are imposed on UI recipients with hyperbolic preferences. We …