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compensate the losers the government is assumed to introduce unemployment benefits (UB). These benefits are financed by either a … wage tax, a payroll tax, or a profit tax. Using a Melitz-type model of international trade with unionized labor markets and … UB: 1. wage tax, 2. profit tax, 3. Payroll tax. …
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-defined threshold, the trade gains will be completely destroyed. (iii) UB financed by a profit tax reduce the unemployment rate of the … compensate the losers the government is assumed to introduce unemployment benefits (UB). These benefits are financed by either a … wage tax, a payroll tax, or a profit tax. Using a Melitz-type model of international trade with unionized labour markets …
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