This paper considers a model with labor market frictions and monopolistic competition in the goods market. It also introduces proportional income taxation and unemployment benefits with a balanced government budget constraint. The paper evaluates the effects of more competition and higher...

Empirical evidence suggests the existence of a negative relationship between rigidities on the labor market and the level of economic activity. In this paper, we provide a background of this evidence. We build a model where the employed worker chooses the optimal level of firing costs by...

We consider a model with labor market frictions and monopolistic competition in the goods market. We introduce proportional income taxation and unemployment benefits with Government balanced budget constraint. We evaluate the effects of both more competition and higher unemployment benefits. We...

This paper proposes an empirical analysis about the influence of some institutional factors (taxation, active and passive labor market policies, labor and goods market regulation and unions' participation) on the component of the wage growth not explained by the productivity growth (WP gap,...