IDEAS home Printed from https://ideas.repec.org/p/fer/resrep/111.html
   My bibliography  Save this paper

Essays on Labour Taxation and Unemployment Insurance

Author

Listed:
  • Sinko, Pekka

Abstract

The study consists of four essays, which analyse the implications of labour taxation and unemployment insurance (UI) in the models of imperfectly competitive labour markets. The first essay studies the effects of labour taxation on unemployment and efficiency in a search equilibrium model with endogenous job destruction. It is shown that the adverse employment effect of labour taxes is mainly due to the prolonged spells of unemployment. A pure increase in the tax progression may reduce unemployment and facilitate the emergence of low-productivity jobs. In the second essay, the link between taxes and the public benefits is perceived owing to the centralised wage setting institutions. This is shown to promote wage moderation, make wages and employment less sensitive to wage taxation and reduce hours worked. The third essay considers alternative ways to organize the government subsidies in a model, where taxalike payments are collected by the industry level funds in order to finance unemployment benefits. It is shown that equilibrium unemployment is decreasing in the share of UI financed by the employed union members. The fourth essay analyses the effects of UI in a job search model with endogenous search effort. It is shown that UI with a limited potential duration induces more search effort among the long-term unemployed who have exhausted a considerable amount of the current benefits.

Suggested Citation

  • Sinko, Pekka, 2004. "Essays on Labour Taxation and Unemployment Insurance," Research Reports 111, VATT Institute for Economic Research.
  • Handle: RePEc:fer:resrep:111
    as

    Download full text from publisher

    File URL: https://www.doria.fi/handle/10024/148573
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fer:resrep:111. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anita Niskanen). General contact details of provider: http://edirc.repec.org/data/vatttfi.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.