In June 1995, the Swedish parliament decided to cut the replacement rate in unemployment insurance from 80 percent to … reform caused an increase in the transition rate of roughly 10 percent. There is also evidence of anticipatory behavior among …

Conventional models of equilibrium unemployment typically imply that proportional taxes on labor earnings are neutral … with respect to unemployment as long as the tax does not affect the replacement rate provided by unemployment insurance, i ….e., unemployment benefits relative to after-tax earnings. When home production is an option, the conventional results may no longer …

In 2001 and 2002, Sweden introduced several unemployment insurance reforms. A major innovation in the first reform was … compensation during the first 20 weeks of unemployment. The 2002 reform retained the two-tiered benefit structure but involved also … unemployment to employment. We take advantage of the fact that the reforms had quasi-experimental features where the treatmentsʺ …

and 'services' are produced both in the market and within the households. We use the model to examine how unemployment and … services reduces unemployment whereas a tax cut on goods has no effect. A reform involving tax differentiation, with lower …