Pareto-Improving Unemployment Policies

Jörg Lingens and Klaus Wälde

Working Papers from Business School - Economics, University of Glasgow

Abstract: CWe investigate how continental European unemployment can be reduced without reducing unemployment benefits and without reducing the net income of lowwage earners. Lower unemployment replacement rates reduce unemployment, the net wage and unemployment benefits. A lower tax on labour increases net wages and unemployment benefits. Combining these two policies allows to reduce unemployment without reducing net income of workers or of the unemployed. Such a policy becomes self-financing under realistic parameter constellations when taxes are reduced only for low-income workers.

Keywords: Inequality; Unemployment; Taxation; Policy reform (search for similar items in EconPapers)
JEL-codes: E60 H23 J38 J51 (search for similar items in EconPapers)
Date: 2007-09
New Economics Papers: this item is included in nep-lab
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Related works:
Journal Article: Pareto-Improving Unemployment Policies (2009)
Working Paper: Pareto-Improving Unemployment Policies (2006)
Working Paper: Pareto-Improving Unemployment Policies (2005)
Working Paper: Pareto - Improving Unemployment Policies (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2007_34

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