IDEAS home Printed from https://ideas.repec.org/a/bla/scotjp/v44y1997i3p269-279.html
   My bibliography  Save this article

Public Consumption and Unemployment

Author

Listed:
  • Gylfi Zoega

Abstract

This paper introduces public consumption—hence the size of the public sector—into an efficiency wage model of the labour market. The effect of a simultaneous rise in taxes and public consumption on unemployment is derived. There arises an unambiguous positive relationship between the size of the public sector and equilibrium unemployment if public and private consumption are substitutes and wages are taxed. The impact of taxes on consumption on unemployment, although in general not equal to zero, is ambiguous.

Suggested Citation

  • Gylfi Zoega, 1997. "Public Consumption and Unemployment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 44(3), pages 269-279, August.
    • Handle: RePEc:bla:scotjp:v:44:y:1997:i:3:p:269-279
    DOI: 10.1111/1467-9485.00057
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9485.00057
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9485.00057?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Axel Hall & Gylfi Zoega, 2015. "Why do Europeans Work Less than Americans? Public Consumption and Welfare Benefits as a Cause of the North-Atlantic Divide," CESifo Working Paper Series 5264, CESifo.
    2. Saeid Mahdavi & Emmanuel Alanis, 2013. "Public expenditures and the unemployment rate in the American states: panel evidence," Applied Economics, Taylor & Francis Journals, vol. 45(20), pages 2926-2937, July.
    3. Hall, Axel & Gylfi Zoega, 2019. "Welfare, employment, and hours of work," Economics Discussion Papers 2019-1, Kiel Institute for the World Economy (IfW Kiel).
    4. Goerke, Laszlo, 1999. "Value-added Tax versus Social Security Contributions," IZA Discussion Papers 55, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scotjp:v:44:y:1997:i:3:p:269-279. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sesssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.