Tax reform and the Dutch labor market: an applied general equilibrium approach

• 成果类型: Article; Proceedings Paper
• 署名作者: Bovenberg, AL; Graafland, JJ; de Mooij, RA
• 署名单位: CPB Netherlands Bureau for Economic Policy; Tilburg University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(99)00116-4
• 发表日期: 2000
• 页码: 193-214
• 关键词: tax policy; structural unemployment; labor supply; applied general equilibrium model; the Netherlands

摘要

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. However, targeting is likely to damage the quality and quantity of labor supply. Tax cuts in the higher tax brackets boost the quantity and quality of formal labor supply but are less effective in reducing unemployment and in raising unskilled employment and female labor supply. (C) 2000 Elsevier Science S.A. All rights reserved.