Wage setting and tax progressivity in dynamic general equilibrium
AbstractThis paper concerns the implications of progressive labor income taxation for wage determination in dynamic general equilibrium. The main purpose is to analyze the general equilibrium effects of increased tax progressivity in terms of the responses in the real wage rate, employment, the capital stock, output and consumption. Among the results, we find that increased tax progressivity increases the real wage rate and decreases employment under both union and competitive wage formation. Copyright 2002, Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 54 (2002)
Issue (Month): 3 (July)
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- Kjell Erik Lommerud & Bjørn Sandvik & Odd Rune Staume, 2003.
"Good Jobs, Bad Jobs and Redistribution,"
CESifo Working Paper Series
1022, CESifo Group Munich.
- Lommerud, Kjell Erik & Sandvik, B. & Straume, Odd Rune, 2003. "Good Jobs, Bad Jobs and Redistribution," CEPR Discussion Papers 4115, C.E.P.R. Discussion Papers.
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- Alho, Kari O. E., 2006. "Labour Market Institutions and the Effectiveness of Tax and Benefit Policies in Enchancing Employment: A General Equilibrium Analysis," Discussion Papers 1008, The Research Institute of the Finnish Economy.
- Sonedda, Daniela, 2006. "Macroeconomics effects of progressive taxation in a unionized economy," Economic Modelling, Elsevier, vol. 23(1), pages 110-130, January.
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