Effect of unemployment insurance tax on wages and reallocation of labour

Autor: Lynn Gray, Wayne Everson, Deergha Raj Adhikari
Rok vydání: 2009
Předmět:
Zdroj: Applied Economics Letters. 16:147-150
ISSN: 1466-4291
1350-4851
DOI: 10.1080/13504850601018247
Popis: We develop a labour market equilibrium model and show how the federally collected Unemployment Insurance (UI) Tax affects labour force allocation between regular labour and contract labour. We also analyse the effect of UI tax on wages of the two types of labour. Our model suggests that the effect of a UI tax will be to increase the employment and wages of contract labour and to reduce the employment and wages of regular labour.
Databáze: OpenAIRE
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