Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19389
Authors: 
Birk, Angela
Michaelis, Jochen
Year of Publication: 
2002
Series/Report no.: 
HWWA Discussion Paper 208
Abstract: 
This paper explores how revenue-neutral tax reforms impact employment and economic growth in models of exogenous and endogenous growth and search frictions on the labor market. We show that (i) a cut in the payroll tax financed by an increase in the wage tax lowers both equilibrium employment and the equilibrium growth rate, that (ii) a higher energy tax combined with a cut in wage taxes boosts employment but has an ambiguous effect on growth, and that (iii) a higher energy tax combined with a cut in payroll taxes enhances employment but mitigates economic growth.
Subjects: 
search unemployment
growth
tax reform
JEL: 
E6
J6
H2
O4
Document Type: 
Working Paper

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