In European Welfare States, unskilled workers are typically unionized, while the wage formation of skilled workers is more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect wage formation, employment and welfare in dual domestic...

We study the effects of revenue-neutral labor tax reforms in an imperfectly competitive domestic labor market under Nash wage bargaining and flexible outsourcing. A revenue-neutral increase in the wage tax progression will decrease the negotiated wage rate, increase domestic labor demand and...

This paper identifies several distortions which create barriers to entrepreneurship. First, inaddition to the innate entry cost, there are entry costs caused by regulation. Second, unionwage policies raise the opportunity cost of entrepreneurship...<BR>

We show that taxation of rents may yield an intergenerational Pareto-improvement in a smallopen economy provided tax revenues are earmarked to reduce wage taxes...

Within an efficiency wage framework, we study the effects of two revenue-neutral tax reformsthat change the progressivity of the labour tax system. A revenue-neutral increase in both thewage tax and tax exemption and a revenue-neutral change in the composition of labourtaxation towards the tax...

We evaluate the effects of outsourcing and wage solidarity on wage formation andequilibrium unemployment in a heterogeneous labour market, where wages are determinedby a monopoly labour union. We find that outsourcing promotes the wage dispersion betweenthe high-skilled and low-skilled workers...

We study both the various consequences and the incentives of outsourcing. We argue thatthe wage elasticity of labour demand is increasing as a function of the share of outsourcing,which is importantly a result consistent with existing empirical research...

In this paper, we study how high school students reacted to the shocking news of a school shooting. The shooting coincided with national high-school matriculation exams. As there were exams both before and after the shooting, we can perform a difference-in-differences analysis to uncover how the...

We present a theory on migration of dual-earner couples, and test it in the context of international migration. Our model predicts that the probability that a couple emigrates increases in the earnings of the primary earner. The effect of the earnings of the secondary earner may go either way....

We present and test a theory of prospective and retrospective pocketbook voting. Focusing on two large reforms in Sweden, we establish a causal chain from policies to sizeable individual gains and losses and then to voting. The Social Democrats proposed budget cuts affecting parents with young...