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Labor market studies on the effects of minimum wages are typically confinedto the sector or worker group directly affected. We present a two-sector searchmodel in which one sector is more productive than the other one and thus,pays higher wages. In such a framework, setting a minimum wage in...
Persistent link: https://www.econbiz.de/10005866246
Within a two-country model with involuntary unemployment, this paper investigatescorporate income taxation under … tax policy causesa fiscal externality which goes back to unemployment. This unemployment externality is thelowest when the … welfare and reduces unemployment. The welfare increase is the strongest under apure sales formula. …
Persistent link: https://www.econbiz.de/10005858915
Italian labor market is considered to be the most highly regulated among OECD countries, the unemployment rate in the North …
Persistent link: https://www.econbiz.de/10005859493
26 NUTS-2 regions over the period 2005-2008.When the local unemployment rate is treated as predetermined, there is … instrument for current unemployment rate, we find anunemployment elasticity of -0.099. We also find a higher elasticity for … finding is that the wages of females in Turkey are significantlymore responsive to local unemployment rates than their male …
Persistent link: https://www.econbiz.de/10009360532
regulations leadto a simultaneous reduction in informality and unemployment. The difference between thesetwo policy options lies …
Persistent link: https://www.econbiz.de/10009360540
in developing countries have multiple equilibria - the same economy can be stuck at different levels of unemployment with …
Persistent link: https://www.econbiz.de/10005860481
Theory predicts that mandated employment protections may reduce productivity by distortingproduction choices. Firms facing (non-Coasean) worker dismissal costs will curtail hiringbelow efficient levels and retain unproductive workers, both of which should affectproductivity. These theoretical...
Persistent link: https://www.econbiz.de/10008939768
What are the impacts of labor tax reform on wage setting and employment to keep therelative tax burden per low-skilled and high-skilled workers constant in the case ofheterogenous domestic labor markets, i.e. imperfect competition in low-skilled labor andperfect competition in high-skilled labor...
Persistent link: https://www.econbiz.de/10009360617
We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment …
Persistent link: https://www.econbiz.de/10005859632
Many contributions suggest that earnings instability has increased during the 1980s and1990s. This paper develops and estimates an on-the-job search model of the labor market tostudy the contribution of wage inequality and job mobility in explaining earnings instability. Tostudy the evolution...
Persistent link: https://www.econbiz.de/10005860471