Arbeitspapier
Payroll taxes, social insurance and business cycles
Payroll taxes represent a major distortionary influence of governments on labor markets. This paper examines the role of payroll taxation and the social safety net for cyclical fluctuations in a nonmonetary economy with labor market frictions and unemployment insurance, when the latter is only imperfectly related to search effort. A balanced social insurance budget renders gross wages more rigid over the cycle and, as a result, strengthens the model's endogenous propagation mechanism. For conventional calibrations, the model generates a negatively sloped Beveridge curve as well as substantial volatility and persistence of vacancies and unemployment.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 5150
- Klassifikation
-
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Unemployment: Models, Duration, Incidence, and Job Search
Business Fluctuations; Cycles
- Thema
-
business cycles
labor markets
payroll taxes
unemployment
consumption-tightness puzzle
Lohnsummensteuer
Steuerwirkung
Arbeitslosenversicherung
Konjunkturelle Arbeitslosigkeit
Arbeitsplatzsuchmodell
OECD-Staaten
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Burda, Michael C.
Weder, Mark
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Burda, Michael C.
- Weder, Mark
- Institute for the Study of Labor (IZA)
Entstanden
- 2010