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Erscheinungsjahr: 
2010
Schriftenreihe/Nr.: 
IZA Discussion Papers No. 5013
Verlag: 
Institute for the Study of Labor (IZA), Bonn
Zusammenfassung: 
We use a calibrated general equilibrium model with heterogeneous labor and search to evaluate the quantitative effects of various labor tax cut scenarios. The focus is on skill heterogeneity combined with downward wage rigidities at the low end of the skill ladder. Workers can take jobs for which they are overeducated. We compare targeted and non-targeted tax cuts, both with or without over-education effects. Introducing over-education changes substantially the employment, productivity and welfare effects of a tax cut, although tax cuts targeted on the least skilled workers always have larger effects.
Schlagwörter: 
Minimum wage
job creation
job destruction
job competition
search unemployment
taxation
computable general equilibrium models
JEL: 
C68
E24
J64
Dokumentart: 
Working Paper

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