We calibrate an infinite-horizon model with endogenous growth and unemployment on actual data from the largest … taxes when financed either raising capital taxation or reducing unemployment subsidies. We find two main results: (i) with … lump-sum transfers, reducing labor taxes and unemployment subsidies is beneficial to both employment and growth, while …

model in Daveri and Maffezzoli (2000), where unemployment is generated by monopolistic unions, and calibrate it to reproduce …

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 …