This paper analyses the impact of fiscal policy on the labour market by usi
ng an applied general equilibrium model for the Netherlands, called MIMIC.
In particular, we explore the economic effects of changes in the tax system
that currently receive much attention in the Dutch policy debate including
, lower marginal tax rates, reductions in social premiums paid by employers
targeted at the unskilled, vouchers for long-term unemployed, and earned i
ncome tax credits. (C) 1999 Elsevier Science B.V. All rights reserved.