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 …

unemployment rates by education groups reflect more underlying differences in incidence rather than in duration of unemployment … models of human capital investments, unemployment and education are not trivially related ; (ii) firing costs may lead to a …

, labour and financial markets) and employment performance. Our analysis includes unemployment, inactivity and jobless rates … institutional rigidities affecting unemployment impact inactivity along the same line. Among other results, we find strong evidence …

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 …