, in order to analyse the effects that changes in the "exogenous" rental rate of capital have on the unemployment rate …. When the number of firms is kept fixed, an increase in the rental rate affects unemployment only through its impact on … selectivity, with the direction of the change depending on the size of the worker?s unemployment benefits relative to the firm …

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

Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections … European and US unemployment differ so much when labor markets have become more similar at the margin in Europe and the US. To …