higher wages, lower employment and higher unemployment under either wage determination regime …

Recent debates have suggested that taxation is very detrimental to labour force participation and employment. However … marginal effective taxation of labour, and that it on the margin lowers the marginal costs of public funds. Such employment … employment conditioned. It is shown that these conditionalities can make high labour force participation consistent with a high …

sector activities (public consumption and social security expenses) by general (wage) taxation in an economy which becomes … labour income. Since financing of social security via general taxation involves a negative externality the effects of … financed by general taxation. …