We examine how firms' contractual relationships with their employees affect the design of
their debt contracts, and the use of financial covenants in particular. Viewing the firm as the …

We provide causal evidence of an ex ante moral hazard effect of unemployment insurance
(UI) by matching plausibly exogenous changes in UI benefit duration across state-weeks …

This chapter has set out in detail the models which are employed below in order to analyse
the labour market effects of changes in tax rates and in alterations in the tax structure. The …

English summary: Clemens Fuest discusses the employment and welfare effects of tax
reforms in economies with equilibrium unemployment. He analyses the employment effects …

Why are principal–agent models used in some circumstances and efficiency wage models in
others? In this note, it is argued that efficiency wages provide incentives based on an …

It is often argued that the quantity that is traded on the market is independent of the side of
the market which is taxed. However, this assertion need not hold, especially in imperfectly …

We perform a welfare analysis of transport infrastructure improvements in the presence of an
imperfect labor market, allowing for endogenous wages and involuntary unemployment …

While layoff costs in the US are mostly due to experience‐rated unemployment insurance,
layoff costs in European labour markets are primarily a consequence of employment …

This paper illustrates a shirking–type efficiency wage model to explain why shorter working
hours cause an ambiguous effect on employment as the empirical result. We find that shorter …

We consider a job matching model where the relationships between firms and wealth-
constrained workers suffer from moral hazard. Specifically, effort on the job is non …