Burda, Michael C.; Weder, Mark - Institut zur Zukunft der Arbeit <Bonn> - 2010
payroll taxation and the social safety net for cyclical fluctuations ina nonmonetary economy with labor market frictions and … unemployment insurance, when thelatter is only imperfectly related to search effort. A balanced social insurance budget … rendersgross wages more rigid over the cycle and, as a result, strengthens the model’s endogenouspropagation mechanism. For …