Tax Incidence in a Model with Efficiency Wages and Unemployment
AbstractThe purpose of the present paper is to examine the effects of taxation on income distribution in a model with efficiency wages and involuntary unemployment. Central to our efficiency-wage model is the hypothesis that firms set wages above market-clearing levels, whenever the productivity of labor depends on the real wage paid by the firm, and unemployment. Within a two sector general equilibrium model we study the incidence of factor and commodity taxes on income distribution, and unemployment. Our findings differ substantially from those derived by the traditional neoclassical analysis, originally developed by Harberger, and as it has been extended by several authors.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Economic Journal.
Volume (Year): 20 (2006)
Issue (Month): 4 ()
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Web page: http://www.tandfonline.com/RIEJ20
Other versions of this item:
- Vassilis T Rapanos, 2004. "Tax Incidence In A Model With Efficiency Wages And Unemployment," Public Economics 0404001, EconWPA.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gilbert E. Metcalf, 2006.
Discussion Papers Series, Department of Economics, Tufts University
0607, Department of Economics, Tufts University.
- Don Fullerton & Gilbert E. Metcalf, 2001. "Tax Incidence," Discussion Papers Series, Department of Economics, Tufts University 0106, Department of Economics, Tufts University.
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