This paper studies the impact of raiding opportunities in a competitive labor market where firms have complete information about the ability of employed workers but are incompletely informed regarding the ability of the unemployed. In equilibrium, some high-ability workers are involuntarily...

This paper investigates the proposition that a progressive tax system contributes to wage moderation. We continue the work of Lockwood and Manning (1993), who considered macro date for the UK, by looking at Danish wage equations for different earnings levels. Our main conclusions are that...

In this paper we consider a risk averse worker who is moving back and forth between employment and unemployment; layoffs are random and beyond the worker's influcence, while the re-employment chance is directly affected by search effort. We characterize the worker's optimal savings and...