Arbeitspapier
An Experimental Investigation of Wage Taxation and Unemployment in Closed and Open Economies
We investigate experimentally the economic effects of wage taxation to finance unemployment benefits for a closed economy and an international economy. The main findings are the following. (i) There is clear evidence of a vicious circle in the dynamic interaction between the wage tax and unemployment. (ii) Employment is boosted by budget deficits but subsequent tax rate adjustments to balance the budget lead to employment levels substantially lower than theoretically predicted. (iii) A sales risk for producers due to price uncertainty on output markets appears to cause a downward pressure on factor employment. For labor the wage tax exacerbates this adverse effect.
- Language
-
Englisch
- Bibliographic citation
-
Series: Tinbergen Institute Discussion Paper ; No. 00-112/1
- Classification
-
Wirtschaft
Design of Experiments: General
General Equilibrium and Disequilibrium: General
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Open Economy Macroeconomics
- Subject
-
Experiments
international economics
wage taxation
unemployment
Lohnsteuer
Arbeitslosigkeit
Offene Volkswirtschaft
Test
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Riedl, Arno
van Winden, Frans
- Event
-
Veröffentlichung
- (who)
-
Tinbergen Institute
- (where)
-
Amsterdam and Rotterdam
- (when)
-
2000
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Riedl, Arno
- van Winden, Frans
- Tinbergen Institute
Time of origin
- 2000
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