This paper explores how revenue-neutral tax reforms impact employment and economic growth in models of exogenous and endogenous growth and search frictions on the labor market. We show that (i) a cut in the payroll tax financed by an increase in the wage tax lowers both equilibrium employment...

How does technical progress affect long-term unemployment? The relationship between long-term unemployment and the rate of growth attributable to technical progress is evaluated in a growth-matching-model with heterogeneous jobless workers and with endogenously determined long-term unemployed...

How can long-term unemployment be reduced by policy measures of the government? In this paper a growth-matching-model is developed, in which the unemployment pool consists of heterogeneous unemployed workers, short-term and long-term unemployed, and with an endogenous skill-depreciation of the...

This paper tests a geography and growth model using regional data for Europe, the US, and Japan. We set up a standard geography and growth model with a poverty trap and derive a log-linearized growth equation that corresponds directly to a threshold regression technique in econometrics. In...

We estimate the speed of income convergence for a sample of 196 European NUTS 2 regions over the period 1985-1999. So far there is no direct estimator available for dynamic panels with strong spatial dependencies. We propose a two-step procedure, which involves first spatial filtering of the...

Williamson (1965) argued that catching up countries experiencing strong national growth tend also to see a widening in regional disparities, whereas in more developed economies strong national growth and falling regional disparities could go hand in hand. We find some evidence of a trade-off...