Welfare benefits in the Nordic countries are often tied to employment. We argue that this is one of the factors behind the success of the Nordic model, where a comprehensive welfare state is associated with high employment. In a general equilibrium setting, the underlining mechanism works...

In mid-2008, high employment and low unemployment rates characterised the Estonian labour marketin comparison with the average of the EU15 countries. While aggregate outcomes improvedduring 2000-07, large inequalities persisted across regions, ethnic groups, and workers with different...