among the labor force. However, the effects of tax cuts vary across countries, often resulting in large wage shifts but …

as employment taxes or payroll taxes, for given tax revenue. Turning to non-competitive labor market models, like wage … bargaining of efficiency wage models, the two taxes cease to be equivalent in the sense that balanced-budget substitutions of one … equilibrium employment in the wage bargaining model, it may lead to a lower level of equilibrium employment in the efficiency wage …