This paper explores how revenue-neutral tax reforms impact employment and economic growth in a model of endogenous … growth and search frictions on the labor market. We analyze how savings and the incentive to create new jobs are affected by … observe an increase in both growth and, via the capitalization effect, employment. Most other tax reforms, however, imply a …

open neoclassical growth model that is extended by a Pissarides-style labor market matching approach. In the general … equilibrium model, the labor market of the three factor growth model is characterized by immobile heterogeneous jobless workers … growth condition, an increase in technical progress implies a favorable capitalization effect respectively an unfavorable …

This paper explores how revenue-neutral tax reforms impact employment and economic growth in models of exogenous and … endogenous growth and search frictions on the labor market. We show that (i) a cut in the payroll tax financed by an increase in … the wage tax lowers both equilibrium employment and the equilibrium growth rate, that (ii) a higher energy tax combined …