Kleven, Henrik Jacobsen; Sørensen, Peter Birch - 1999
We analyse recent proposals to shift the tax burden away from low-paid labour, assuming a dual labour market where the … "good"high-paying jobs are rationed. A shift in the tax burden from low-paid to high-paid workers has an ambiguous effect on … the tax reform raises total employment, economic efficiency may be reduced because labour is reallocated from high …