We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment … reduce equilibrium unemployment of low-skilled workers both in the presence and absence of labor taxation. In the presence of … outsourcing, wage tax, tax exemption and payroll tax have an ambiguous effect on equilibrium unemployment. Increasing the degree …

interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market … performance. Our analysis has two special features. First, apart from the two labour market states - employment and unemployment … that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in …

non-OECD countries. The findings suggest that the quality of institutions matters to a large extent for economic outcomes …

whether policy effects vary across countries depending on the level of economic development and whether institutions have an … influence on economic outcomes. The paper lists of policies and institutions that could be used to quantify the effect of …