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Contrary to widespread belief, we show that low-pay workers might not generally prefer that the minimum wage rate be increased to a level where the labor demand is unitary elastic. Rather, there exists a critical value of elasticity of labor demand such that increases in the minimum wage rate...
Persistent link: https://www.econbiz.de/10012779195
. This critical value decreases with unemployment benefits and increases with workers' risk aversion. We also show that in …
Persistent link: https://www.econbiz.de/10013316718
The generosity of the Unemployment Insurance system (UI) plays a central role for the job search behavior of unemployed … individuals. Standard search theory predicts that an increase in UI benefit generosity, either in terms of benefit duration or … entitlement, has a negative impact on the job search activities of the unemployed increasing their unemployment duration. Despite …
Persistent link: https://www.econbiz.de/10013149513
Firms' labor demand responses to wage changes are of key interest in empirical research and policy analysis. However, despite extensive research, estimates of labor demand elasticities remain subject to considerable heterogeneity. In this paper, we conduct a comprehensive meta-regression...
Persistent link: https://www.econbiz.de/10013058312
of time-varying policy and institutional regressors. Yet another is our examination of unemployment and participation … lower participation, even if the unemployment effects are muted. Although we report some similar findings to Neumark and …
Persistent link: https://www.econbiz.de/10013138490
institutional context. We find that parental unemployment is strongly negatively related to children's life satisfaction across … countries and years. The effect is thereby moderated by the generosity of unemployment benefits. Exploiting across- and within … mothers', unemployment. We further test the robustness of our results considering unemployment benefits jointly with social …
Persistent link: https://www.econbiz.de/10013315268
In this paper, we explore employers' decisions regarding the employment of legal and illegal immigrants in the presence of endogenous adjustment cost, minimum wages and an enforcement budget. We show that increasing the employment of legal foreign workers will increase the number of illegal...
Persistent link: https://www.econbiz.de/10013086228
The minimum wage rate has been introduced in many countries as a means of alleviating the poverty of the working poor. This paper shows, however, that an imperfectly enforced minimum wage rate causes small firms to face an upward-sloping labor supply schedule. Since this turns these firms into...
Persistent link: https://www.econbiz.de/10013157531
We analyze optimal taxation in an economy with monopsonistic labor markets. The individuals, whose only decisions are whether to work, or not, have heterogeneous productivities and opportunity costs of work. Given its preferences for redistribution, the government, which does not observe the...
Persistent link: https://www.econbiz.de/10013316879
decrease in population depending on the local labor demand elasticity and on how unemployment benefits are financed.The paper …
Persistent link: https://www.econbiz.de/10013012806