, no additionalfiring costs and if unemployment benefits are independent of redundancy pay, employment and wellfare … shown, that a fixed payment will lower wages, leave employment and welfare unaffected if there are no wage-dependent taxes … willrise with redundancy payments. If these payments are also a function of previous wages, positive employment effects will be …

More progressive income taxes raise employment in models of imperfectly competitive labour markets. However, this … progressive taxes reduce profits. This induces firms to exit the market such that the positive employment effect can vanish in a … opportunities raise the likelihood of positive employment effects due to higher tax progressivity. …

In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We …