Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25852
Authors: 
Lingens, Jörg
Wälde, Klaus
Year of Publication: 
2006
Series/Report no.: 
CESifo working paper 1807
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 of the unemployed. Such a policy becomes self-financing under realistic parameter constellations when taxes are reduced only for low-income workers.
JEL: 
J38
J51
H23
E60
Document Type: 
Working Paper

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