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We formulate a two-country model with monopolistic competition and heterogeneous firms to reconsider labor market linkages in open economies. Labor-market imperfections arise by virtue of country-specific real minimum wages. Two principal experiments are considered. First, we show that trade...
Persistent link: https://www.econbiz.de/10012463453
show that a binding minimum wage -- while leading to unemployment -- is nevertheless desirable if the government values … redistribution toward low wage workers and if unemployment induced by the minimum wage hits the lowest surplus workers first. This …
Persistent link: https://www.econbiz.de/10012464328
Before 1979, unemployment insurance (UI) benefits were not treated as taxable income in the United States. Several … has had the predicted effect of reducing unemployment duration.The study uses data on a sample of persons that filed for … presents persuasive evidence of a tax effect on unemployment duration. The 1979 policy change is estimated to have reduced …
Persistent link: https://www.econbiz.de/10012477837
states of employment, unemployment, and non-participation. The determinants of actual household transitions are then … functions show that increased unemployment among married men has a sizeable short-run effect on both participation and …
Persistent link: https://www.econbiz.de/10012478409
This paper presents a model in which firms recruit both unemployed and employed workers by posting vacancies. Firms act monopsonistically and set wages to retain their existing workers as well as to attract new ones. The model differs from Burdett and Mortensen (1998) in that its assumptions...
Persistent link: https://www.econbiz.de/10012464892
, which was particularly strong in the second half of the 90s, is a major aspect of the downward trends in unemployment and … and the unemployment rate, because a nonparticipant who wants to work has (i) a higher probability of entering the labor … force (compared to other nonparticipants), and (ii) a higher probability of joining unemployment conditional on entering the …
Persistent link: https://www.econbiz.de/10012457415
This paper evaluates the effects of the earned income tax credit (EITC) on poor families. Exploiting state-level variation in EITCs, we find that the EITC helps families rise above poverty-level earnings. This occurs by inducing labor market entry in families that initially do not have an adult...
Persistent link: https://www.econbiz.de/10012471171
the minimum wage on teenage unemployment, or its relative impact on black and white teenagers. The purpose of this paper … unemployment rates of teenagers, we explore several related issues: the relative importance of changing the level and coverage of …
Persistent link: https://www.econbiz.de/10012478323
The effects of minimum wage legislation on the employment and wage rates of youth are estimated using a new statistical approach. We find that without the minimum, not only would the percent of out-of-school youth who are employed be 4 to 6 percent higher than it is, but also that these youth...
Persistent link: https://www.econbiz.de/10012478404
. In the more recent work, attention has shifted to effects on unemployment in low-wage demographic groups, such as … distinction between minimum wage effects on employment and those on unemployment. The purpose of this paper is to explore the … analytical distinction between employment and unemployment effects in the hope of providing some understanding of the …
Persistent link: https://www.econbiz.de/10012479087