Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18910 
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper No. 1272
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We present an applied general equilibrium modelling approach to analyse employment and unemployment effects of labour tax cuts in an economy where wages are determined through firm-union bargaining at the sectoral level. In such a labour market regime, simulations for Germany show that labour tax policies can make only a small contribution to alleviating the problem of persistent unemployment.
Subjects: 
applied general equilibrium
wage bargaining
labour tax policy
JEL: 
D58
J60
E62
Document Type: 
Working Paper
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