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Are there any differences in how workers of different skill levels respond to regional shocks? This paper addresses that question using the methodology of Blanchard and Katz (1992) and a unique data set on working-age population, labor force, and employment for five educational groups (ranging from the illiterate to the college-educated) over 1964-92 for the 50 Spanish provinces. The paper finds that the high-skilled migrate very promptly in response to a decline in regional labor demand, while the low-skilled drop out of the labor force or stay unemployed.

Labor --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Geographic Labor Mobility --- Immigrant Workers --- Unemployment: Models, Duration, Incidence, and Job Search --- Wages, Compensation, and Labor Costs: General --- Demand and Supply of Labor: General --- Labour --- income economics --- Unemployment rate --- Labor markets --- Labor costs --- Labor market --- Spain --- Income economics

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The paper investigates the relationship between labor taxation and unemployment in Sweden by estimating a labor market model that includes a wage-setting locus and labor demand and supply relationships. The study simulates the effect of a 1 percentage point increase in the payroll tax and in total tax rates. The increase in the payroll tax pushes up labor costs by about ½ percent over a 5–10 year time horizon. Hours worked fall by 0.5 percent and the unemployment rate rises by 0.3 percentage point. The increase in total tax rates generates a similar result. Therefore, it appears that increases in taxes have adversely affected employment and unemployment in Sweden.

Labor --- Taxation --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Wages, Compensation, and Labor Costs: General --- Demand and Supply of Labor: General --- Labour --- income economics --- Public finance & taxation --- Welfare & benefit systems --- Payroll tax --- Real wages --- Labor markets --- Labor taxes --- Wages --- Taxes --- Fiscal policy --- Labor market --- Income tax --- Sweden --- Income economics

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This paper surveys the theoretical and empirical literature on the relationship between taxation and public expenditure and economic growth. Particular attention is paid to the effect of taxation and government expenditure on the supply and productivity of labor and physical capital. Studies suggest that well-targeted government expenditures on health, education, and infrastructure should have a positive impact on growth. By contrast, the impact of taxation on the supplies of labor and capital, and on output growth, is more muted.

Labor --- Macroeconomics --- Public Finance --- Taxation, Subsidies, and Revenue: General --- National Government Expenditures and Related Policies: General --- Fiscal and Monetary Policy in Development --- Macroeconomics: Production --- Demand and Supply of Labor: General --- Labor Economics: General --- Aggregate Factor Income Distribution --- Labour --- income economics --- Public finance & taxation --- Production growth --- Labor supply --- Income --- Expenditure --- Production --- National accounts --- Economic theory --- Labor market --- Labor economics --- Expenditures, Public --- United States --- Income economics

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This paper proposes and solves a search model in which job separation requires mandatory notice. When jobs are subject to idiosyncratic uncertainty, firms would issue advance notice even with good business conditions. We show that such precautionary policy is not pursued if it entails sufficiently high productivity losses. If workers can search on the job, an increase in advance notice increases job to job movements, reduces unemployment flows, and has ambiguous effects on unemployment. Results are consistent with the fact that North American and European labor markets, despite their differences in job security provisions, experience similar turnover rates and dissimilar unemployment flows.

Labor --- Unemployment: Models, Duration, Incidence, and Job Search --- Demand and Supply of Labor: General --- Labor Demand --- Labor Force and Employment, Size, and Structure --- Wages, Compensation, and Labor Costs: General --- Labour --- income economics --- Unemployment --- Labor markets --- Job creation --- Labor force --- Wages --- Labor market --- United States --- Income economics

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This Selected Issues paper describes stylized facts, institutions, and directions for reform in the Italian labor market. The paper examines developments in aggregate features of the labor market. It highlights that during the latest cyclical recovery, total employment has remained stagnant and the unemployment rate has not declined despite modest output growth. The paper examines different features of labor market developments from a longer-term perspective, reviewing developments in regional labor markets as well as the evolutions of employment shares and relative wages across sectors. The paper also describes the Italian social protection system.

Exports and Imports --- Labor --- Macroeconomics --- Public Finance --- Demography --- Wages, Compensation, and Labor Costs: General --- Demand and Supply of Labor: General --- Aggregate Factor Income Distribution --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Nonwage Labor Costs and Benefits --- Private Pensions --- Labour --- income economics --- Pensions --- International economics --- Population & demography --- Labor markets --- Income --- National accounts --- Labor market --- Economic theory --- Italy --- Income economics