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Title:Pareto - Improving Unemployment Policies PDF Logo
Authors:Wälde, Klaus
Lingens, Jörg
Issue Date:2005
Series/Report no.:Würzburg economic papers 63
Abstract:We investigate how continental European unemployment can be reduced without reducing unemployment benefits and without reducing the net income of low-wage earners. Lower unemployment replacement rates reduce unemployment, the net wage and unemployment benefits. A lower tax on labour increases net wages and - for certain benefit-systems - unemployment benefits as well. Combining these two policies allows to reduce unemployment in countries with "net-Bismarck" and Beveridge systems without reducing net income of workers or the unemployed. Such a policy becomes self-financing under realistic parameter constellations when taxes are reduced only for low-income workers.
Subjects:Inequality
Unemployment
Taxation
Policy reform
JEL:J51
E60
J38
H23
Document Type:Working Paper
Appears in Collections:W.E.P. - Würzburg Economic Papers, Lst. f. VWL, Geld u. internat. Wirtschaftsbeziehungen, Universität Würzburg

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