the one hand, wages are lowered and unemployment decreases, on the other hand, the individual labour supply decision is … progressivity is below the actual level. A decomposition approach shows that the optimal level is increased by high unemployment and …

, it reduces unemployment by exerting downward pressure on wages. This trade-off is quantitatively assessed using a … bargaining and involuntary unemployment. In the simulations carried out using this model, the optimal degree of tax progressivity …