Pareto - Improving Unemployment Policies

Klaus Wälde and Jörg Lingens

No 63, W.E.P. - Würzburg Economic Papers from University of Würzburg, Department of Economics

Abstract: We investigate how continental European unemployment can be reduced without reducing unemployment benefits and without reducing the net income of low-wage earners. Lower unemployment replacement rates reduce unemployment, the net wage and unemployment benefits. A lower tax on labour increases net wages and - for certain benefit-systems - unemployment benefits as well. Combining these two policies allows to reduce unemployment in countries with "net-Bismarck" and Beveridge systems without reducing net income of workers or 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: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/22356/1/wep63.pdf (application/pdf)

Related works:
Journal Article: Pareto-Improving Unemployment Policies (2009)
Working Paper: Pareto-Improving Unemployment Policies (2007)
Working Paper: Pareto-Improving Unemployment Policies (2006)
Working Paper: Pareto-Improving Unemployment Policies (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:wuewep:63

Access Statistics for this paper

More papers in W.E.P. - Würzburg Economic Papers from University of Würzburg, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().