This paper examines the magnitude of human capital spillovers on unemployment. Using both individual and metropolitan level data, we find that the adult population share of college graduates is negatively associated with the unemployment rate. More specifically, we find that those who reside in...

In this article, we test whether tenure choice influences employment. This influence might arise through a number of channels, including transaction costs, lock-in effects, wealth effects, externalities and commuting times. These factors could collectively have either a positive or negative...

We develop a model for determining the optimal high income linear tax rate when there exist imperfectly substitutable types of labor. If one type is disproportionately prevalent among higher income taxpayers, then wages adjust in response to more progressive taxation and part of the statutory...