@TechReport{iza:izadps:dp5150,
            	author={Burda, Michael C. and Weder, Mark},
            	title={Payroll Taxes, Social Insurance and Business Cycles},
            	year={2010},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={5150},
            	url={https://www.iza.org/publications/dp5150},
	abstract={Payroll taxes represent a major distortionary influence of governments on labor markets. This paper examines the role of payroll taxation and the social safety net for cyclical fluctuations in a nonmonetary economy with labor market frictions and unemployment insurance, when the latter is only imperfectly related to search effort. A balanced social insurance budget renders gross wages more rigid over the cycle and, as a result, strengthens the model's endogenous propagation mechanism. For conventional calibrations, the model generates a negatively sloped Beveridge curve as well as substantial volatility and persistence of vacancies and unemployment.},
	keywords={consumption-tightness puzzle;unemployment;payroll taxes;labor markets;business cycles},
            }