The article explores how different labor market rules affect the success of tax and benefit policies in boosting employment. By using a computer model based on the Finnish economy, the researchers found that policies like lowering taxes work better when wages can adjust. Supply-side policies, like cutting benefits, can be more effective when wages are flexible. Tax cuts should target low-income workers under wage bargaining. Policies to increase demand for certain workers can reduce unemployment, but may backfire if those workers negotiate higher wages. In a fully flexible labor market, wages would vary more, but unemployment could drop significantly, leading to economic gains.