A) Marginal taxation and replacement ratio | ||||||||
t = 0 | t = 0.15 | t = 0.3 | t = 0.4 | |||||
ρ = 0 | 5.0 | 5.1 | (0.0) | 5.3 | (0.0) | 5.4 | (0.0) | |
ρ = 0.15 | 5.7 | (0.0) | 6.0 | (−0.1) | 6.4 | (−0.2) | 7.0 | (−0.3) |
ρ = 0.3 | 6.6 | (−0.2) | 7.2 | (−0.4) | 8.5 | (−1.0) | 10.3 | (−2.0) |
ρ = 0.4 | 7.4 | (−0.5) | 8.6 | (−1.0) | 11.2 | (−2.6) | 17.3 | (−7.3) |
B) Hiring subsidies and firing costs (r = 0.2; t = 0.2) | ||||||||
F = 0 | F = 0.33 | F = 0.67 | F = 1 | |||||
H = 0 | 6.5 | (−0.2) | 6.0 | (−0.3) | 5.4 | (−0.8) | 4.7 | (−1.6) |
H = 0.33 | 7.0 | (−0.3) | 6.5 | (−0.2) | 6.0 | (−0.3) | 5.4 | (−0.8) |
H = 0.67 | 7.4 | (−0.8) | 7.0 | (−0.3) | 6.5 | (−0.2) | 6.0 | (−0.3) |
H = 1 | 7.8 | (−1.6) | 7.4 | (−0.8) | 7.0 | (−0.3) | 6.5 | (−0.2) |
C) Progressive taxation (ρ = 0.2; t = 0.2) | ||||||||
τ = 0 | 6.5 | (−0.2) | ||||||
τ = 0.33 | 4.8 | (0.0) | ||||||
τ = 0.67 | 3.8 | (−0.4) | ||||||
τ = 1 | 3.1 | (−0.9) |