Published in Healthcare Finance, Tax and Law Weekly, November 21st, 2007
"Tax policy implications vary considerably depending on the wage setting model and indexation of unemployment benefits. If wage setting is based on bargaining, a pure increase in the tax progression reduces unemployment, improves the relative position of low-income workers and facilitates the emergence of low-productivity jobs," wrote P. Sinko and colleagues.
The researchers concluded: "However, this comes at the...
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