Pallage, Stéphane; Scruggs, Lyle; Zimmermann, Christian - Institute for the Study of Labor (IZA) - 2008
)θy if eligible to UI (w = i)
(1 −τ)ψy if unemployed and not eligible (w = u)
where τ is the income tax rate used to raise … and divided by the net annual wage of the
APW. (Annualization facilitates the computation of income tax burdens.) Social …
tested, while income support is. Note that for this analysis, we used the effective
labor income tax rates published by …