) nonparticipation and (involuntary) unemployment are endogenous. The optimal employment tax rate is given by an inverse employment … elasticity rule. This rule depends on the global response of the employment rate, which depends not only on the participation …. For plausible values of the parameters, our matching environment induces much lower employment tax rates than the usual …

track toward growth and employment, apparently without rising earnings inequality. But if one digs a little deeper, Belgium …

the unemployment rate and increases the employment rate. From a theoretical point of view, higher progressivity induces a … wage-moderation effect and increases overall employment since employment of low-paid workers is more responsive. We test … average wage, we show that a more progressive taxation reduces the unemployment rate and increases the employment rate. These …