TY  - RPRT
        AU  - Batyra, Anna
AU  - Sneessens, Henri R.
        TI  - Selective Reductions in Labor Taxation: Labor Market Adjustments and Macroeconomic Performance
        PY  - 2010/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5013
        UR  - https://www.iza.org/publications/dp5013
        AB  - We use a calibrated general equilibrium model with heterogeneous labor and search to evaluate the quantitative effects of various labor tax cut scenarios. The focus is on skill heterogeneity combined with downward wage rigidities at the low end of the skill ladder. Workers can take jobs for which they are overeducated. We compare targeted and non-targeted tax cuts, both with or without over-education effects. Introducing over-education changes substantially the employment, productivity and welfare effects of a tax cut, although tax cuts targeted on the least skilled workers always have larger effects.
        KW  - minimum wage
KW  - job creation
KW  - job destruction
KW  - job competition
KW  - search unemployment
KW  - taxation
KW  - computable general equilibrium models
        ER  -