Labour Taxation in a Unionised Economy with Home Production
This paper investigates the impact of payroll taxes on unemployment and welfare in a model with household production and union firm wage bargaining. It turns out that unemployment, most likely, falls with a reduced payroll tax in the market sector producing household substitutes (service sector), although the taxation in the rest of the economy needs to be raised.
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|Date of creation:||1998|
|Contact details of provider:|| Postal: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN.|
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