worker's productivity is independent of his type. We show that equilibrium unemployment arises in the wage-setting game under …

, compared to estimating at the underlying regional level. The distribution of regional unemployment rates within countries over … time is not mean-scaled. Regions with low unemployment rates are the main drivers of changes in aggregate unemployment. The … steepness of a log-linear wage curve in regions with low unemployment dominates at the aggregate (country) level, overestimating …

Blanchflower and Oswald (1994) have argued that, in regional data, the level of unemployment is related to the level of … predict that the change in wages ought to be related to the unemployment rate. On the other hand, there is considerable …

In order to alleviate unemployment it is often recommended to reduce social security contributions (SSC) and to … compensate for the ensuing loss in revenues by a rise in the value-added tax (VAT). Assuming unemployment to be caused by … neutralised, for example, by imposing a constant wedge, the employment impact will depend on the nature of the unemployment …

. Both marginal tax rates are of ambiguous sign. The tax systems' effects on the wage formation and the unemployment rates …