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An extensive empirical literature has documented that workers with high tenure suffer large and persistent earnings losses when they get displaced. We study the reasons behind these losses in a tractable search model with a life-cycle dimension, endogenous job mobility, worker- and...
Persistent link: https://www.econbiz.de/10011109086
Persistent link: https://www.econbiz.de/10011160937
Comparing labor markets of the United States and Germany over the period 1980 − 2004 uncovers three stylized differences: (1) transition rates from unemployment to employment (UE) were lower by a factor of 5 and inflow rates from employment to unemployment (EU) were lower by a factor of 4 in...
Persistent link: https://www.econbiz.de/10011259260
We develop a macroeconomic model with physical and human capital, human capital risk, and limited contract enforcement. We show analytically that young (high-return) households are the most exposed to human capital risk and are also the least insured. We document this risk-insurance pattern in...
Persistent link: https://www.econbiz.de/10011079909
Empirical studies show that job search behavior depends on the financial situation of the unemployed. Starting from this observation, we ask how unemployment insurance policy should take the individual financial situation into account. We use a quantitative model with a realistically calibrated...
Persistent link: https://www.econbiz.de/10011080241
shocks.
Persistent link: https://www.econbiz.de/10011080865
We study optimal capital taxation in a dynamic Mirrleesian model with time-nonseparable preferences. The model covers the widely used cases of habit formation and durable consumption. Time-nonseparable preferences change labor supply incentives across time and thereby generate novel motives to...
Persistent link: https://www.econbiz.de/10011081707
We prove existence, monotonicity and differentiability of firm profits and provide first-order conditions that characterize the properties of the optimal contract. We demonstrate how the shape of the contract depends on the persistence and variance of the productivity process, on worker and firm...
Persistent link: https://www.econbiz.de/10011081810
We use data from the Survey of Consumer Finance and Survey of Income Program Participation to show that young households with children are under-insured against the risk that an adult member of the household dies. We develop a tractable macroeconomic model with human capital risk, age-dependent...
Persistent link: https://www.econbiz.de/10011093784
This paper studies the effect of habit formation on optimal capital taxes in a dynamic Mirrleesian model. We make three distinct contributions. First, we decompose intertemporal wedges (implicit capital taxes) for general time-nonseparable preferences into a wealth effect, a complementarity...
Persistent link: https://www.econbiz.de/10011112491