involuntary unemployment and increase welfare. A revenue-neutral tax reform which increases the capital tax rate and reduces the …, increase output, and reduce unemployment as long as labour tax rate exceeds the capital tax rate. The result holds even though …

Finnish unemployment rose in the early 1990s from 3% to 18% in just four years. It has since fallen back to the average … unemployment. We then discuss and research the role of labour market institutions in the adjustment process that has brought … unemployment back to a 'normal' level. We argue that these institutions cannot be blamed for the increase in unemployment, but that …