Taxation and the Structure of Labor Markets: The Case of Corporatism
AbstractThe authors propose an explanation for the wide variation in rates of taxation across developed economies, based on differences in labor market institutions. In 'corporatist' economies, which feature centralized labor markets, taxes on labor input will be less distortionary than when labor supply is determined individually. Since the level of labor supply is set by a small group of decisionmakers, these individuals will recognize the linkage between the taxes that workers pay and the benefits that they receive. Labor tax burdens are indeed higher in more corporatist nations, while nonlabor taxes are actually lower. There is also some evidence that the distortionary effects of labor taxes are lower in more corporatist economies. Copyright 1993, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by MIT Press in its journal Quarterly Journal of Economics.
Volume (Year): 108 (1993)
Issue (Month): 2 (May)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
Other versions of this item:
- Lawrence H. Summers & Jonathan Gruber & Rodrigo Vergara, 1992. "Taxation and the Structure of Labor Markets: The Case of Corporatism," NBER Working Papers 4063, National Bureau of Economic Research, Inc.
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.:
- Card, David, 1990.
"Unexpected Inflation, Real Wages, and Employment Determination in Union Contracts,"
American Economic Review,
American Economic Association, vol. 80(4), pages 669-88, September.
- David Card, 1988. "Unexpected Inflation, Real Wages, and Employment Determination in Union Contracts," NBER Working Papers 2768, National Bureau of Economic Research, Inc.
- Robert J. Gordon, 1991.
"Productivity, Wages, and Prices Inside and Outside of Manufacturing in the U.S., Japan, and Europe,"
in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 153-207
National Bureau of Economic Research, Inc.
- Gordon, Robert J. & Gordon, Robert J., 1987. "Productivity, wages, and prices inside and outside of manufacturing in the U.S., Japan, and Europe," European Economic Review, Elsevier, vol. 31(3), pages 685-733, April.
- Gordon, Robert J, 1986. "Productivity, Wages and Prices Inside and Outside of Manufacturing in the US, Japan and Europe," CEPR Discussion Papers 134, C.E.P.R. Discussion Papers.
- Robert J. Gordon, 1988. "Productivity, Wages, and Prices Inside and Outside of Manufacturing in the U.S., Japan, and Europe," NBER Working Papers 2070, National Bureau of Economic Research, Inc.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Bean, C R & Layard, P R G & Nickell, S J, 1986. "The Rise in Unemployment: A Multi-country Study," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages S1-22, Supplemen.
- Robert J. Barro, 1991.
"Economic Growth in a Cross Section of Countries,"
NBER Working Papers
3120, National Bureau of Economic Research, Inc.
- MaCurdy, Thomas E & Pencavel, John H, 1986. "Testing between Competing Models of Wage and Employment Determination in Unionized Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S3-S39, June.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.