Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73078
Authors: 
de Pinto, Marco
Year of Publication: 
2012
Series/Report no.: 
Joint Discussion Paper Series in Economics 44-2012
Abstract: 
The contribution of this paper is to derive an optimal redistribution scheme for trade gains in the case of a government's objective function that explicitly accounts for the equity-efficiency trade-off. The government pays unemployment benefits (UB) either financed by a wage tax, a payroll tax or a profit tax paid by exporters only. Using a Melitz-type framework with unionized labor markets and heterogeneous workers we show that there is a clear-cut ranking of the redistribution schemes in terms of welfare level: 1. UB financed by a profit tax paid by exporters, 2. UB financed by a wage tax, 3. UB financed by a payroll tax.
Subjects: 
trade liberalization
heterogeneous firms
trade unions
income inequality
unemployment benefits
taxes
JEL: 
F1
F16
H2
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.