Bagger, Jesper; Moen, Espen R.; Vejlin, Rune Majlund - 2021
amenities. A planner uses affine tax functions to finance lump-sum transfers to all workers and unemployment benefits. The …We analyse the deadweight losses of tax-induced labor misallocation in an equilibrium model of the labour market where … competitive search equilibrium maximizes after-tax utility subject to resource constraints and the tax policy. A higher tax rate …