homogenous workers and heterogeneous firms. The optimal redistribution can be attained using a positive unemployment benefit and … an increasing and regressive labor income tax. The positive unemployment benefit serves the purpose of lowering the …

indicates a system of endogenous relations between economic performance (unemployment/income-distribution), social policy … endogenous relationships, to suggest plausible identification conditions derived from relevant theory and substance, and to offer …

In this paper we investigate the recent fall in unemployment, and the rise in part-time work, labour market … participation, inequality and welfare in Germany. Unemployment fell because the Hartz IV reform induced a large fraction of the long …. Overall we find that Germany increased welfare as unemployment fell. …