LONG-RUN EFFECTS OF EMPLOYMENT AND PAYROLL TAXES IN AN EFFICIENCY WAGE MODEL

Authors
RASMUSSEN BS
Citation
Bs. Rasmussen, LONG-RUN EFFECTS OF EMPLOYMENT AND PAYROLL TAXES IN AN EFFICIENCY WAGE MODEL, Economics letters, 58(2), 1998, pp. 245-253
Citations number
7
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
58
Issue
2
Year of publication
1998
Pages
245 - 253
Database
ISI
SICI code
0165-1765(1998)58:2<245:LEOEAP>2.0.ZU;2-M
Abstract
A long run efficiency wage model with free entry and exit is proposed. It is demonstrated that a balanced-budget substitution of employment taxes for payroll taxes leads to a higher long run equilibrium level o f employment. (C) 1998 Elsevier Science S.A.