Measures aimed at reducing the tax burden on labour have been advocated to alleviate the EU unemployment problem. Most … of the analyses document a relationship between the unemployment rate and the tax burden on labour. Hence, it is not … possible to discern whether the effect on unemployment derives from labour demand, labour supply or through the wage formation …

In a simple theoretical framework, the quality of institutions affects individual’s investment decisions, and hence … income levels and distribution. When institutions deteriorates and inequalities increase, the incumbent undertakes … redistributive taxation to maintain political support. The quality of institutions and the extent of redistribution depend on the …

decision makers. These responses, in turn influenced by institutions and instrumental freedoms, ultimately affect the dynamics …

In this paper, the effects of alternatives to finance unemployment benefits on employment and wages are examined in a … model with search generated equilibrium unemployment. It is demonstrated that employment improves if a value--added tax is …