Essays on labour markets and pensions

In this dissertation we study labour markets, pension systems, and the interaction between the two.
In the second chapter after the introduction we study the effects of fiscal changes in an overlapping-generations model. A labour tax increase reduces welfare more than a consumption tax increase and a tax swap makes all new-born generations better off. However, during transition it opens up a welfare gap between the retired (worse off) and the working (better off).
In the third chapter we study the intergenerational effects of unemployment caused by wage rigidity on the accumulation of pension entitlements. We build an overlapping-generations model in which unions set the wages and firms pick employment. The pension system has an effect on steady state outcomes of labour market variables, but pension systems matter less for the transitional dynamics.
The fourth chapter analyses euro area Beveridge curves over the past 25 years. We find an outward shift of the aggregate euro area, Spanish and French Beveridge curves since the onset of the crisis, but an inward shift for Germany. Examining the factors underlying the observed developments we find (tentative) evidence for skill, sectoral and geographical mismatch.
In the fifth chapter we estimate wage equations to test for changes in the responsiveness of wages to unemployment using euro area panel estimates. Wages are less responsive at high levels of unemployment. Additionally, differences in bargaining position — in particularly differences between unionised vs. non-unionised labour and permanent vs. temporary jobs — explain a large part of the downward wage rigidity.