proportional income taxation and unemployment benefits with Government balanced budget constraint. We evaluate the effects of both … more competition and higher unemployment benefits. We show that more competition has a positive effect on employment and … the Government budget. Higher unemployment benefits can be financed both by higher tax rate and by increasing competition …

introduces proportional income taxation and unemployment benefits with a balanced government budget constraint. The paper … evaluates the effects of more competition and higher unemployment benefits. The findings reveal that more competition has a … positive effect on employment and the government budget. Higher unemployment benefits can be financed by both higher tax rate …