This paper investigates the impact of payroll taxes on unemployment and welfare in a model with household production … and union firm wage bargaining. It turns out that unemployment, most likely, falls with a reduced payroll tax in the …

and "services" are produced both in the market and within the households. We use the model to examine how unemployment and …

Conventional models of equilibrium unemployment typically imply that proportional taxes on labor earnings are neutral … with respect to unemployment as long as the tax does not affect the replacement rate provided by unemployment insurance, i ….e., unemployment benefits relative to after-tax earnings. When home production is an option, the conventional results may no longer …