Showing 31 - 40 of 11,298
This paper studies a model of human capital accumulation with real wage rigidity. It is shown that the arbitrage condition between hiring a skilled versus an unskilled worker may be stated as a positive relationship between their relative unemployment rates. It may be the case that this locus is...
Persistent link: https://www.econbiz.de/10005124159
In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment are much lower in Europe compared to North America, while employment-to-employment flows are similar in the two continents. In the model, firms use discretion in terms of whom...
Persistent link: https://www.econbiz.de/10005124276
This Paper studies a model of the distribution of income under bounded needs. Utility derived from any given good reaches a bliss point at a finite consumption level of that good. On the other hand, introducing new varieties always increases utility. It is assumed that each variety is owned by a...
Persistent link: https://www.econbiz.de/10005124380
This paper criticizes the Alesina and Ichino (2007) proposal of taxing men more than women. First, the proposal is outright sex discrimination. Second, it cannot be Pareto-improving. Third, its virtues in terms of efficiency are better obtained by gender-neutral voluntary schemes for taxing...
Persistent link: https://www.econbiz.de/10005136419
This paper develops a model to analyse the implications of firing costs on incentives for R&D and international specialization. The key idea is that, to avoid paying firing costs, the country with a rigid labour market will tend to produce relatively secure goods, at late stages in their product...
Persistent link: https://www.econbiz.de/10005136526
This paper studies the impact of income inequality on fiscal conservatism when an increase in inequality affects the bottom portion of income distribution. It is argued that, contrary to what is generally assumed in the economic literature, inequality will then be associated with less, rather...
Persistent link: https://www.econbiz.de/10005136638
Much of the political economy analysis of reform focuses on the conflict of interest between groups that stand to gain or lose from the competing policy proposals. In reality, there is also a lot of disagreement about the working of the policy: in addition to conflicting interests, conflicting...
Persistent link: https://www.econbiz.de/10005011855
In this paper we study the political issues associated with reform in the European labour market. We first discuss the role played by labour market rigidities in European society, and argue that reform is a difficult task because many regulations and rigidities benefit the majority of the...
Persistent link: https://www.econbiz.de/10005497719
This paper starts from the observation that despite their very high levels of unemployment, major European countries have devoted few resources to reducing it. This suggests that there is little political concern about high unemployment. I develop a model where the government tries to increase...
Persistent link: https://www.econbiz.de/10005498035
This paper develops a model of job creation and job destruction in a growing economy with embodied technical progress, that we use to analyze the political support for employment protection legislations such as the ones that are observed in most European countries. We analyze the possibility of...
Persistent link: https://www.econbiz.de/10005498176