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

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. …