The paper analyzes theoretically and empirically how a firm level tax calculated on the average wage relative to a pre-set norm may promote employment. The theoretical model generalizes the discussion to the case of a subsidization of the average wage dept under the norm chosen by the...

In this paper the authors study the the employment effects of a budget and revenue neutral restructuring of taxes levied on employers and employees. The authors derive a necessary and sufficient condition for taxes levied on workers to have the same employment effects as taxes levied on firms....

One of the most widely used method of targeting is to reduce welfare benefits as income rises. Although the need for such targeting is clear enough, it also entials two important difficulties. The purpose of this paper is to study the voting equilibrium of the degree of targeting and the level...