Titel:The redistribution of trade gains and the equity-efficiency trade-off
Autor:de Pinto, Marco
Veröffentlicht:2012
URI:https://archiv.ub.uni-marburg.de/es/2024/0157
DOI: https://doi.org/10.17192/es2024.0157
ISSN: 1867-3678
DDC:330 Wirtschaft
Publikationsdatum:2024-01-03
Lizenz:https://creativecommons.org/publicdomain/mark/1.0

Dokument

Schlagwörter:
taxes, trade unions, heterogenous firms, unemployment benefits, income inequality, trade liberalization

Summary:
The contribution of this paper is to derive an optimal redistribution scheme for trade gains in the case of government's objective function that explicitly accounts for equity-efficiency trade-off. The government pays unemplyment benefits (UB) either financed by a wage tax, a payroll tax or a profit tax paid by exporters only. Using a melitz-type framework with unionized labor markets and heterogeneous workers we show that there is a clear-cut ranking of the redistribution schemes in terms of welfare leve: 1. UB financed by a profit tax paid by exporters 2. UB financed by a wage tax, 3. UB financed by a payroll tax.


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