{"id":1584,"date":"2023-02-13T16:19:18","date_gmt":"2023-02-13T16:19:18","guid":{"rendered":"https:\/\/www.fiw.ac.at\/publications\/unemployment-benefits-as-redistribution-scheme-of-trade-gains-a-positive-analysis\/"},"modified":"2023-02-13T16:19:18","modified_gmt":"2023-02-13T16:19:18","slug":"unemployment-benefits-as-redistribution-scheme-of-trade-gains-a-positive-analysis","status":"publish","type":"publication","link":"https:\/\/www.fiw.ac.at\/en\/publications\/unemployment-benefits-as-redistribution-scheme-of-trade-gains-a-positive-analysis\/","title":{"rendered":"Unemployment Benefits as Redistribution Scheme of Trade Gains &#8211; a Positive Analysis"},"content":{"rendered":"\nTrade liberalization is no Pareto-improvement &#8211; there are winners (high-skilled) and losers (low-skilled). To compensate the losers the government is assumed to introduce unemployment benefits (UB). These benefits are financed by either a wage tax, a payroll tax, or a profit tax. Using a Melitz-type model of international trade with unionized labor markets and heterogeneous workers we show that: (i) there is a threshold level of UB where all trade gains are destroyed, (ii) this threshold differs between different kind of taxes, (iii) there is a clearcut ranking in terms of welfare for the chosen funding of the UB: 1. wage tax, 2. profit tax, 3. Payroll tax.\n\n","protected":false},"featured_media":0,"menu_order":0,"template":"","jelcode":[522,155,835],"keyword":[259,837,839,211,836,838],"class_list":["post-1584","publication","type-publication","status-publish","hentry","jelcode-f1","jelcode-f16","jelcode-h2","keyword-heterogenous-firms","keyword-skill-specific-unemployment","keyword-taxes","keyword-trade-liberalization","keyword-trade-unions","keyword-unemployment-benefits"],"acf":{"year":2012,"month":5,"day":"","volume":"","number":"092","pages":41,"reviewed":"0","citeid":"FIW_WP_092","fiwseries":"FIW Working Papers","event":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Unemployment Benefits as Redistribution Scheme of Trade Gains - a Positive Analysis - FIW<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fiw.ac.at\/en\/publications\/unemployment-benefits-as-redistribution-scheme-of-trade-gains-a-positive-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Unemployment Benefits as Redistribution Scheme of Trade Gains - a Positive Analysis - FIW\" \/>\n<meta property=\"og:description\" content=\"Trade liberalization is no Pareto-improvement &#8211; there are winners (high-skilled) and losers (low-skilled). To compensate the losers the government is assumed to introduce unemployment benefits (UB). These benefits are financed by either a wage tax, a payroll tax, or a profit tax. 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