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Author:Bovenberg, A.
Graafland, J.
Mooij, R. de
Title:Tax reform and the Dutch labor market: an applied general equilibrium approach
Journal:Journal of Public Economics
2000 : OCT, VOL. 78:1/2, p. 193-214
Index terms:TAX REFORM
LABOUR MARKETS
EQUILIBRIUM THEORY
Language:eng
Abstract:This paper develops an applied general equilibrium model to explore various tax cuts aimed at combating unemployment and raising labor supply. The model calibrates modern labor-market theories on wage setting, job-matching, labor supply and labor demand on Dutch data. It represents the core of a larger applied general equilibrium model for the Netherlands called MIMIC. Simulations reveal that targeting in-work benefits at the low-skilled is the most effective way to cut economy-wide unemployment.
SCIMA record nr: 218832
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