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 the efficiency-wage theory is the hypothesis that firms may set wages above market-clearing levels, whenever the productivity of labor depends positively on the real wage paid by the firm. Within a two sector general equilibrium model we study the incidence of factor and commodity taxes on income distribution. Our findings are quite different from the results derived by the traditional neoclassical analysis, originally developed by Harberger.
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Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0404001.
Length: 18 pages
Date of creation: 06 Apr 2004
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tax incidence; efficiency wages;
Other versions of this item:
- Vassilis Rapanos, 2006. "Tax Incidence in a Model with Efficiency Wages and Unemployment," International Economic Journal, Taylor & Francis Journals, vol. 20(4), pages 477-494.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-11 (All new papers)
- NEP-PBE-2004-04-11 (Public Economics)
- NEP-PUB-2004-04-11 (Public Finance)
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.:
- Fullerton, Don & Metcalf, Gilbert E., 2002.
Handbook of Public Economics,
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