This paper provides an analytical framework to study fiscal competition between two countries when the strategic instrument is the payroll tax raised to finance unemployment benefits. Each country's production sector uses immobile skilled and mobile unskilled workers. Unemployment arises as a...

This paper studies the design of retirement and disability policies when individuals differ in both productivity and health. The second-best solution implies (downward) distortions in the (per-period) labor supply and in the choice of retirement age for some individuals, and lesser...