De Pinto, Marco - In: Economies : open access journal 3 (2015) 4, pp. 186-215
How does a redistribution of trade gains affect welfare when income inequality matters? To answer this question, we … unemployment benefits that are financed either by a wage tax, a payroll tax or a profit tax. Assuming that welfare declines in … income inequality, we find that welfare increases up to a maximum in the case of wage tax funding, while welfare declines …