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the unemployment rate and increases the employment rate. From a theoretical point of view, higher progressivity induces a … average wage, we show that a more progressive taxation reduces the unemployment rate and increases the employment rate. These …
Persistent link: https://www.econbiz.de/10011075075
We use a calibrated general equilibrium model with heterogeneous labor and search to evaluate the quantitative effects of various labor tax cut scenarios. The focus is on skill heterogeneity combined with downward wage rigidities at the low end of the skill ladder. Workers can take jobs for...
Persistent link: https://www.econbiz.de/10008505488
Significant differences in unemployment in Europe have been observed across skill groups, with the least skilled … suffering the highest and most persistent unemployment rates. To identify policies alleviating this problem, we study the impact …
Persistent link: https://www.econbiz.de/10004984729
We investigate how continental European unemployment can be reduced without reducing unemployment benefits and without … reducing the net income of low-wage earners. Lower unemployment replacement rates reduce unemployment, the net wage and … unemployment benefits. A lower tax on labour increases net wages and - for certain benefit-systems - unemployment benefits as well …
Persistent link: https://www.econbiz.de/10004984874