This paper studies the Swedish fiscal consolidation episode of the 1990s through the lens of a small open economy model with distortionary taxation and unemployment. We argue that the simultaneous reduction in the fiscal deficit and unemployment rate in this episode stems from two factors: (i)...

Chassamboulli discusses recent research on the effect of immigration policies on job creation. New findings show that various types of immigrants can have a positive impact on employers’ incentives to post vacancies and create new jobs, which benefits also competing natives. Policies that...