dc.contributor.author | Mortensen, Dale T. | en |
dc.contributor.author | Pissarides, Christopher A. | en |
dc.creator | Mortensen, Dale T. | en |
dc.creator | Pissarides, Christopher A. | en |
dc.date.accessioned | 2019-05-03T05:22:41Z | |
dc.date.available | 2019-05-03T05:22:41Z | |
dc.date.issued | 2003 | |
dc.identifier.isbn | 978-0-511-49344-7 | |
dc.identifier.isbn | 0-521-81695-5 | |
dc.identifier.isbn | 978-0-521-81695-3 | |
dc.identifier.uri | http://gnosis.library.ucy.ac.cy/handle/7/47666 | |
dc.description.abstract | We explore the effects of taxes and subsidies on job creation, job destruction, employment and wages in the Mortensen-Pissarides version of the search and matching equilibrium framework. Qualitative analytical results show that wage and employment subsidies increase employment, especially of low-skill workers, and also increase wages. A job creation or hiring subsidy reduces unemployment duration but increases incidence, with an ambiguous effect on overall employment. A firing tax has the reverse effects but the same indeterminacy. In the special case of a competitive search equilibrium, the one in which search externalities are internalized, there is a first-best configuration: No tax on the wage, an employment subsidy that offsets the distortions on the job destruction margin induced by unemployment compensation and employment protection policy, and a hiring subsidy equal to the implicit tax on severance imposed by any form of employment protection, with the costs of these and other policies financed by a non-distortionary consumption tax. Computational experiments confirm this ideal also determines the direction in which marginal improvements can be made both in terms of efficiency and in terms of improving low-skill worker employment and wage outcomes. © Russell Sage Foundation 2003 and Cambridge University Press, 2009. | en |
dc.language.iso | eng | en |
dc.publisher | Cambridge University Press | en |
dc.title | Taxes, subsidies and equilibrium labor market outcomes | en |
dc.type | info:eu-repo/semantics/bookChapter | |
dc.description.startingpage | 44 | |
dc.description.endingpage | 73 | |
dc.author.faculty | Σχολή Οικονομικών Επιστημών και Διοίκησης / Faculty of Economics and Management | |
dc.author.department | Τμήμα Οικονομικών / Department of Economics | |
dc.type.uhtype | Book Chapter | en |
dc.contributor.orcid | Pissarides, Christopher A. [0000-0002-0695-058X] | |
dc.description.totalnumpages | 44-73 | |
dc.gnosis.orcid | 0000-0002-0695-058X | |