We provide a theoretical model of the employment effects of a tax-benefit policy implemented by Bipartite Sectoral Funds (BSFs), ruled by workers’ unions and employers’ organizations, based on a wage bargaining that includes the basic elements of a tax-benefit policy and allows for the equivalence of contributions and benefits. We show that employers and workers share the provision costs of the benefits and the institutional profile of the BSFs affects the degree of the equivalence of contributions and benefits. This may actually occur if 1) the exchange between wage and benefits is feasible in the context of current industrial relations; 2) the workers attach a sufficiently high value to the benefits; 3) BSFs are autonomous from Government interference.
Adema, W., & Einerhand, M. (1998). The Growing Role of Private Social Benefits. OECD Labour Market and Social Policy Occasional Papers 32, OECD Publishing.
Adema, W., Fron, P., & Ladaique, M. (2011). Is the European Welfare State Really More Expensive? OECD Social, Employment and Migration Working Papers 124, OECD Publishing.
Alesina, A., & Perotti, R. (1997). The Welfare State and Competitiveness. American Economic Review, 87, 921-939.
Arpaia, A., & Carone, G. (2004). Do Labour Taxes (and Their Composition) Affect Wages in the Short and in the Long Run? European Papers N°216, European Commission. https://doi.org/10.2139/ssrn.871040
Azemar, C., & Desbordes, R. (2010). Who Ultimately Bears the Burden of Greater Non-Wage Labour Costs? Strathclyde Discussion Papers in Economics No. 1004, University of Strathclyde.
Bergström, O. (2009). Anticipating and Managing Restructuring in Sweden. European Commission and International Training Centre.
Boeri, T., Brugiavini, A., & Calmfors, L. (2001). The Role of Unions in the Twenty-First Century. Oxford University Press. https://doi.org/10.1093/0199246580.001.0001
Booth, A. L. (1995). The Economics of the Trade Union. Cambridge University Press.
Calmfors, L., & Driffil, J. (1988). Bargaining Structure, Corporatism and Macroeconomic Performance. Economic Policy, 6, 13-61. https://doi.org/10.2307/1344503
Carone, G., & Salomäki, A. (2001). Reforms in Tax-Benefit Systems in Order to Increase Employment Incentive in the EU. European Economy, Economic Papers 160.
CESE (2011). 40 ans de formation professionnelle: Bilan et perspectives. Les editions des journaux officiels.
CNFPTLV (2012). L’agrément des OPCA. Intentions et resultants d’une rèforme.
Daveri, F., & Tabellini, G. (2000). Unemployment Growth and Taxation in Industrial Countries. Economic Policy, 15, 48-104. https://doi.org/10.1111/1468-0327.00057
Diedrich, A., & Bergström, O. (2006). The Job Security Councils in Sweden. Institute of Management of Innovation and Technology.
Ebbinghaus, B. (2010a). Reforming Bismarckian Corporatism: The Changing Role of Social Partnership in Continental Europe. In B. Palier (Ed.), A Long Goodbye to Bismarck: The Politics of Welfare Reforms in Continental Europe. Amsterdam University Press. https://doi.org/10.1017/9789048512454.011
Ebbinghaus, B. (2010b). Unions and Employers. In F. G. Castles, S. Leibfried, J. Lewis, H. Obinger, & C. Pierson (Eds.), The Oxford Handbook of the Welfare State. Oxford University Press.
Ferrera, M., & Maino, F. (2014). Social Innovation beyond the State. Italy’s Second Welfare in a European Perspective. Centro Einaudi.
Generali Italia (2020). Welfare Index PMI, L’impresa al centro della comunità, 2020 Report.
Goerke, L. (1996). Taxes on Payroll, Revenues and Profits in Three Models of Collective Bargaining. Scottish Journal of Political Economy, 43, 549-565. https://doi.org/10.1111/j.1467-9485.1996.tb00950.x
Gruber, J. (1997). The Incidence of Payroll Taxation: Evidence from Chile. Journal of Labor Economics, 15, S72-S101. https://doi.org/10.1086/209877
Gruber, J., & Kruger, A. B. (1990). The Incidence of Mandated Employer-Provided Insurance: Lessons from Workers’ Compensation Insurance. NBER Working Paper No. 3557. https://doi.org/10.3386/w3557
Koskela, E. (2001). Labour Taxation and Employment in Trade Union Models: A Partial Survey. Bank of Finland Discussion Papers 19/2001. https://doi.org/10.2139/ssrn.315485
Manow, P. (2010). Trajectories of Fiscal Adjustment in Bismarckian Welfare Systems. In B. Palier (Ed.), A Long Goodbye to Bismarck: The Politics of Welfare Reforms in Continental Europe. Amsterdam University Press. https://doi.org/10.1017/9789048512454.012
Mares, I. (2004). Wage Bargaining in the Presence of Social Services and Transfers. World Politics, 57, 99-142. https://doi.org/10.1353/wp.2005.0011
Méhaut, P. (2005). Reforming the Training System in France. Industrial Relations Journal, 36, 303-317. https://doi.org/10.1111/j.1468-2338.2005.00360.x
Melguizo, A., & González-Páramo, J. M. (2012). Who Bears Labour Taxes and Social Contributions? A Meta-Analysis Approach. SERIEs, 4, 247-271. https://doi.org/10.1007/s13209-012-0091-x
Mosley, H., Keller, T., & Speckesser, S. (1998). The Role of the Social Partners in the Design and Implementation of Active Measures. Employment and Training Papers 27, ILO.
Natali, D., & Pavolini, E. (2014). Comparing (Voluntary) Occupational Welfare in the EU: Evidence from an International Research Study. OSE Research Paper No.16.
OECD (1994). The OECD Jobs Study: Facts, Analysis, Strategies.
OECD (2007). Employment Outlook.
Ooghe, E., Schokkaert, E., & Flechet, J. (2003). The Incidence of Social Security Contributions: An Empirical Analysis. Empirica, 30, 81-106. https://doi.org/10.1023/A:1024121432047
Sebardt, G. (2005). Redundancy and the Swedish Model. Iustus Forlag.
Seeleib-Kaiser, M., & Fleckenstein, T. (2009). The Political Economy of Occupational Family Policies: Comparing Workplaces in Britain and Germany. British Journal of Industrial Relations, 4, 741-764. https://doi.org/10.1111/j.1467-8543.2009.00741.x
Summers, L. H., Gruber, J., & Vergara, R. (1993). Taxation and the Structure of Labor Markets: The Case for Corporatism. Quarterly Journal of Economics, 108, 385-411. https://doi.org/10.2307/2118336
Tachibanaki, T. (2003). The Role of Firms in Welfare Provision. In S. Ogura, T. Tachibanaki, & D. A. Wise (Eds.), Labor Markets and Firm Benefits Policies in Japan and the United States. University of Chicago Press.