Arbeitspapier

Public Profit Sharing

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Many countries suffer from persistently high unemployment rates. The scope for labour market reforms is often limited to measures that hurt neither shareholders nor workers. This paper develops a policy proposal, which allows the government to reduce wage costs without changing the income positions as determined in the process of wage negotiations. It is shown that the introduction of public profit sharing, i.e. substituting profit share for social security contributions, can boost employment both in the short run and the long run. Calibrating the model and comparing the results with recent empirical findings about the impact of labour taxation confirm the theoretical findings.

Language: Englisch

Bibliographic citation: Series: CESifo Working Paper ; No. 489

Classification: Wirtschaft

Subject: Public profit sharing
trade unions
unemployment
labour market reform

Event: Geistige Schöpfung

(who): Schöb, Ronnie

Event: Veröffentlichung

(who): Center for Economic Studies and ifo Institute (CESifo)

(where): Munich

(when): 2001

Handle: http://hdl.handle.net/10419/75745

Last update: 10.03.2025, 11:44 AM CET

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Object type

Arbeitspapier

Associated

Schöb, Ronnie
Center for Economic Studies and ifo Institute (CESifo)

Time of origin

2001

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