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levels and endogenous involuntary unemployment due to frictions in the labor markets. Redistributive taxation distorts labor … demand and wages. Compared to their efficient values, gross wages, unemployment and participation are lower. Average tax …
Persistent link: https://www.econbiz.de/10010276950
non-market activities. Search-matching frictions on the labor markets create unemployment. Wages, labor demand and …
Persistent link: https://www.econbiz.de/10010277043
We propose a canonical model of optimal nonlinear redistributive taxation with matching unemployment. In our model … efficient values, at the optimum gross wages and unemployment are lower. Average tax rates are moreover increasing in wages. The …
Persistent link: https://www.econbiz.de/10010277029
This paper revisits the normative properties of search-matching economies when homogeneous workers have concave utility … optima, non-linear income taxation is a key complement to unemployment insurance. According to the level of the workers …
Persistent link: https://www.econbiz.de/10010276945
. Both marginal tax rates are of ambiguous sign. The tax systems' effects on the wage formation and the unemployment rates …
Persistent link: https://www.econbiz.de/10010321780
-sector general equilibrium model featuring matching frictions and worker-firm wage bargaining. Workers are assumed to differ in … ability, and the choice of education is determined endogenously. Job opportunities in an informal sector are available only to … workers who choose not to acquire higher education. We find that increased punishment of informal activities increases the …
Persistent link: https://www.econbiz.de/10010321585
the one hand, wages are lowered and unemployment decreases, on the other hand, the individual labour supply decision is … progressivity is below the actual level. A decomposition approach shows that the optimal level is increased by high unemployment and …
Persistent link: https://www.econbiz.de/10010299470
, it reduces unemployment by exerting downward pressure on wages. This trade-off is quantitatively assessed using a … bargaining and involuntary unemployment. In the simulations carried out using this model, the optimal degree of tax progressivity …
Persistent link: https://www.econbiz.de/10010300518
This paper provides a simple matching model in which unemployed workers and employers in large firms can be matched … increasing the number of workers embedded in the social networks can increase the unemployment rate and decrease workers welfare …
Persistent link: https://www.econbiz.de/10010262031
In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We …
Persistent link: https://www.econbiz.de/10010261641