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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
unemployment. Wages, labor demand and participation are endogenous. The government only observed wage levels. Under a Maximin … is increasing, marginal tax rates are positive everywhere, while wages, unemployment rates and participation rates are …
Persistent link: https://www.econbiz.de/10004984859