| Norm-Based Trade Union Membership |
| Evidence for Germany |
| In the absence of closed-shops and discriminatory wage policies, union membership can be explained by the existence of social norms. We describe a model, incorporating institutional features of the (...) |
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| Fiscal Policy, Economic Integration and Unemployment |
| In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We allow for capital and firm mobility in a model where the government chooses the (...) |
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| Earnings-Related Unemployment Benefits in a Unionised Economy |
| We show that a stronger earnings relationship of unemployment compensation reduces wages and increases employment in an economy in which wages are determined by a trade union that maximises the rent (...) |
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| Tax Evasion in a Unionised Economy |
| In a unionised labour market, a substitution of a payroll for an income tax will not alter employment if tax obligations are fulfilled. However, if workers or firms can evade taxes this irrelevance (...) |
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| Employment Effects of Labour Taxation in an Efficiency Wage Model with Alternative Budget Constraints and Time Horizons |
| In an efficiency wage economy with variable profits, a shift from payroll to employment taxes will reduce unemployment if the tax level is held constant at the initial wage. However, unem-ployment (...) |
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| The Wedge |
| It is often argued that the quantity which is traded on the market is independent of the side of the market which is taxed. However, this assertion need not hold, especially in imperfectly (...) |
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| Value-added Tax versus Social Security Contributions |
| In order to alleviate unemployment it is often recommended to reduce social security contributions (SSC) and to compensate for the ensuing loss in revenues by a rise in the value-added tax (VAT). (...) |
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| Tax Progressivity and Tax Evasion |
| More progressive income taxes raise employment in models of imperfectly competitive labour markets. However, this prediction is not robust to modifications of the analytical structure. For example, (...) |
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| Redundancy Pay and Collective Dismissals |
Redundancy payments for collective dismissals are incorporated into a
Shapiro-Stiglitz model of efficiency wages. It is shown that a fixed payment
will lower wages, leave employment and (...) |
