Assume that the unemployment benefits are linked to the net market wage rate. Use a simple union model to discuss the effects of the following: (a) Higher unemployment benefits. (b) More intense competition on the goods market (due to, for example, increased European integration). (c) A more progressive tax system. (d) A higher employers tax on labour (tE). (e) A higher average tax rate on workers (tA).

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
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Assume that the unemployment benefits are linked to the net market wage rate. Use
a simple union model to discuss the effects of the following:
(a) Higher unemployment benefits.
(b) More intense competition on the goods market (due to, for example, increased
European integration).
(c) A more progressive tax system.
(d) A higher employers tax on labour (tE).
(e) A higher average tax rate on workers (tA).
Transcribed Image Text:Assume that the unemployment benefits are linked to the net market wage rate. Use a simple union model to discuss the effects of the following: (a) Higher unemployment benefits. (b) More intense competition on the goods market (due to, for example, increased European integration). (c) A more progressive tax system. (d) A higher employers tax on labour (tE). (e) A higher average tax rate on workers (tA).
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