In most Organization for Economic Cooperation and Development (OECD) countries, unemployment benefits are tied to previous labor earnings. The authors study the progressivity of this indexation with regard to its effects on employment, output, and wages in three non-Walrasian equilibrium models...

Holmström’s (1982/99) career concerns model has become a workhorse for analyzing agency issues in many fields. The underlying signal jamming argument requires players to use information in a Bayesian way, which is difficult to directly test with field data: typically little is known about the...