Jacquinot, Pascal; Lozej, Matija; Pisani, Massimiliano - 2018
We evaluate the effects of permanently reducing labour tax rates in the euro area (EA) by simulating a large-scale open … rest of the EA - REA), the US, and the rest of the world, region-specific labour markets with search and matching frictions …, and public employment. Our results are as follows. First, a permanent reduction in labour tax rates in the Home region …