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- W2280510566 abstract "Using a Mortensen-Pissarides search-and-matching framework, this paper investigates the importance of search frictions in determining the welfare and distributional effects of tax reforms that re-allocate the tax burden from capital to labour income. Calibrating the model to the UK economy, we find that the tax reforms are Pareto improving but increase inequality in the long run, despite welfare losses for at least one segment of the population in the short run. The results are robust to the variations in the relative bargaining power of workers and different specifications of unemployment benefit. But the welfare gains are higher for all agents if the relative bargaining power of workers is reduced or we assume that unemployment benefit depends on past wages." @default.
- W2280510566 created "2016-06-24" @default.
- W2280510566 creator A5068047224 @default.
- W2280510566 date "2014-01-01" @default.
- W2280510566 modified "2023-09-28" @default.
- W2280510566 title "Tax Reforms in Search-and-Matching Models with Heterogeneous Agents" @default.
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