Working Paper
Taxation and Unemployment: An Applied General Equilibrium Approach
Christoph Boehringer, Stefan Boeters, Michael Feil
CESifo, Munich, 2004
CESifo Working Paper No. 1272
CESifo, Munich, 2004
CESifo Working Paper No. 1272
![](https://cesifo.org/DocImg/cesifo1_wp1272.jpg?c=1689237175)
We present an applied general equilibrium modelling approach to analyse employment and unemployment effects of labour tax cuts in an economy where wages are determined through firm-union bargaining at the sectoral level. In such a labour market regime, simulations for Germany show that labour tax policies can make only a small contribution to alleviating the problem of persistent unemployment.
Keywords: applied general equilibrium, wage bargaining, labour tax policy