Worksharing is considered by many as a promising public policy to reduce unemployment. In this paper we present a review of the most pertinent theoretical and empirical contributions to the literature on worksharing. In addition, we also provide new empirical evidence on this issue, by a cross...

This paper proposes a conceptual framework to investigate the effects of central bank independence, of the degree of centralization of wage bargaining and of the interaction between those institutional variables, on real wages, unemployment and inflation, in a framework in which unions are...

This paper analyzes the determinants of lay-offs, job-to-job movements and total separations with a unique data set that combines information on individual firms and their workers. We are in particular interested in whether the lay-off policy of firms can explain the relatively high level of...

The paper studies simple strategies of labor tax reform in a search and matching model of the labor market featuring endogenous labor supply.Changing the composition of the tax wedge|that is, reducing a payroll tax and increasing a progressive wage tax such that the marginal tax wedge remains...

This paper investigates the impact of individual asset holdings on the probability of leaving unemployment. According to the theory, higher levels of financial wealth will result in higher reservation wages and longer unemployment durations. I estimate the impact of beginning of period financial...

We present a theoretical and empirical analysis of different types of active labor market policies (ALMP).In our empirical analysis we use data on 20 OECD countries covering the time period 1985-1999.We find that labor market training is the most effective program to bring down...

Numerous researchers have incorporated labor or credit market frictions within simple neoclassical models to (i) facilitate quick departures from the Arrow-Debreu world, thereby opening up the role for institutions, (ii) inject some realism into their models, and (iii) explain cross country...

Recent evaluations of active labor market policies are not very optimistic about their effectiveness to bring unemployed back to work.An important reason is that unemployed get locked-in, that is they reduce their effort to find a regular job.This paper uses an administrative dataset from the...

In order to explore the optimal taxation of low-skilled labor, we extend the standard model of optimal non-linear income taxation in the presence of quasi-linear preferences in leisure by allowing for involuntary unemployment, job search, an exogenous welfare benefit, and a non-utilitarian...