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Employment, redistribution and optimal income taxation (Jointly with E. Lehmann at CREST (INSEE), M. Hungerbühler (FUNDP, Namur), Jacquet, Laurence (NHH), Alexis Parmentier (Université d'Evry) and the Hoover Chair of Economic and Social Ethics, UCL) This line of research is devoted to the question: How to redistribute income in current economies characterized by the presence of unemployment, endogenous wages and decisions to participate or not to the (formal) labour market ? The aim is to characterize the tax function that optimizes a given social welfare criterion. An important channel is the impact of the tax schedule on wages and hence on labour demand. This impact is studied from theoretical and empirical perspectives. Explanations of unemployment with a focus on Belgium and its regions In the analysis of the causes of the rise and the persistence of unemployment, the following research themes are or have recently been developed: - Wage formation in Belgium.
- The interaction between the functioning of the product markets and the one of the labour matket.
- The decentralization of labour market policies, rules and institutions in Belgium.
- With H. Sneessens, O. Pierrard and J. Thisse (CORE, UCL), analysis of the mechanisms by which geographical disparities in employment and income may arise and persist over time.
Microeconometric evaluation of labour market policies (with B. Cockx, M. Dejemeppe and A. Launov) In the evaluation studies much effort is devoted to the correction for "selection bias" induced by characteristics that the researcher does not observe. Current projects deal with the impact of monitoring and counselling programmes for the unemployed.Macroeconomic and General-Equilibrium evaluation of labour market policies Earlier research focussed on marcoeconometric evaluation of labour market policies (See e.g. Dor et al, Oxford Bulletin of Economics and Statistics, 1997, and Van der Linden and Dor, 2000). More recently (calibrated) general equilibrium models with frictions bhave been used to evaluate the role of labour market policies such as the profile of unemployment benefits, training programs for the unemployed and reductions in social security contributions (Van der Linden, 2002, 2003a, 2003b, 2003c, 2005, the IZA discussion paper 2073 and the paper published with G. Cardullo in 2007). |