Taxation, Wage Bargaining, and Unemployment

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In an effort to explain cross-national and temporal changes in employment outcomes, this book examines a political exchange between unions and governments, during which unions voluntarily agreed to pursue moderate wage settlements, while governments responded with an expansion of social policy transfers. The book shows how the growth in the tax burden necessary to finance existing social policy commitments has undermined the effectiveness of this political exchange and its ability to restore high levels of employment.