Describe the impact of a payroll tax on wages and employment

Reference no: EM131923381

Problem

1. Discuss the implications of equilibrium for a competitive economy containing many regional markets when labor and firms are free to enter and exit the various markets. Why is the resulting allocation of labor efficient?

2. Describe the impact of a payroll tax on wages and employment in a competitive industry. Why is part of the tax shifted to workers?

Reference no: EM131923381

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