Cahuc, Pierre; Zylberberg, Andre - C.E.P.R. Discussion Papers - 2005
. It is shown that optimal tax schemes comprise both payroll and layoff taxes when the state provides public unemployment … insurance and aims at redistributing income. The optimal layoff tax is equal to the social cost of job destruction, which … layoff taxes, that are usually absent from actual tax schemes, could lead to significant increases in employment and GDP. …