Arbeitspapier

Public profit sharing

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: Research Report ; No. 2001-2

Classification
Wirtschaft
Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
Trade Unions: Objectives, Structure, and Effects
Game Theory and Bargaining Theory: General
Subject
public profit sharing
trade unions
unemployment
labour market reform
Arbeitsmarktflexibilität
Arbeitslosenversicherung
Reform
Erfolgsbeteiligung
Lohnverhandlungstheorie
Lohnsteuer
Steuerwirkung
Beschäftigungseffekt
Wohlfahrtsanalyse
Theorie

Event
Geistige Schöpfung
(who)
Schöb, Ronnie
Event
Veröffentlichung
(who)
The University of Western Ontario, Department of Economics
(where)
London (Ontario)
(when)
2001

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Schöb, Ronnie
  • The University of Western Ontario, Department of Economics

Time of origin

  • 2001

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