English, Article, Journal or magazine article edition: Fighting unemployment without worsening povety: Basic income versus reductions of social security contributions Van der Linden, Bruno

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Bookmark: http://trove.nla.gov.au/version/4158
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Fighting unemployment without worsening povety: Basic income versus reductions of social security contributions
Author
  • Van der Linden, Bruno
Physical Description
  • preprint
Notes
  • Reductions of social security contributions (RSSC) and a basic income (BI) (or the related Negative Income Tax) are considered in a dynamic general equilibrium framework with imperfect competition on the labour market (the Ôwage-setting/​price-settingÕ model). The cases with homogeneous and heterogeneous workers are considered. It turns out that both policies have a long-run effect on the unemployment rate if they are appropriately designed. With two types of skills, this proposition holds if relative wages are rigid and if the supply of skills is not perfectly elastic. A welfare analysis shows that introducing appropriately framed RSSC or BI can be a Pareto improvement.
  • basic income; taxation; payroll taxes; social insurance; wage bargaining; equilibrium unemployment
  • RePEc:ctl:louvir:1999028
Language
  • English
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