Under full rationality, a labour market tax levied on employers and a corresponding income
tax levied on employees are equivalent. With boundedly rational agents, this equivalence is …

This article examines the problem of unemployment and the effectiveness of fiscal
instruments for regulating employment. Authors have analyzed 131 countries of the world …

Tax Liability Side Equivalence (tax LSE) claims that the statutory incidence of a tax is
irrelevant for its economic incidence. Tax LSE is predicted to hold in gift-exchange labor …

This chapter has set out in detail the models which are employed below in order to analyse
the labour market effects of changes in tax rates and in alterations in the tax structure. The …

It is well known that, for a specific tax, its economic incidence does not depend on which
side of the market has the legal obligation to pay the tax. In this paper, we show that, for an …

In this paper we evaluate the incidence of the tax structure on the labor market. To do so we
go beyond the traditional examination of the “level” effect of the fiscal wedge and consider a …

It is often argued that the quantity that 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 …

A key obstacle to reducing payroll taxes in many industrialized and transition countries is the
direct revenue loss to the government that it implies. This paper studies a simple and …

We exploit the common features of models such as union, search and efficiency wage
models to develop a framework that can be used to analyze the effects of any revenue …

In this paper, we attempt to renew the interest in marginal employment subsidies. Such
subsidies are paid only for a firm's additional employment exceeding some reference level …