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The effects of capital income taxation on wage formation

Listed author(s):
  • Dalin, Torbjörn
  • Stage, Jesper

In this paper, the effects of capital income taxation on wage formation are studied using OECD data. The results indicate that a rise in the tax rate on capital income will reduce real wages and increase employment.

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File URL: http://www.sciencedirect.com/science/article/pii/S0165176511002680
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 113 (2011)
Issue (Month): 2 ()
Pages: 186-188

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Handle: RePEc:eee:ecolet:v:113:y:2011:i:2:p:186-188
DOI: 10.1016/j.econlet.2011.07.001
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Pisauro, Giuseppe, 1991. "The effect of taxes on labour in efficiency wage models," Journal of Public Economics, Elsevier, vol. 46(3), pages 329-345, December.
  2. Aronsson, Thomas & Sjögren, Tomas, 2002. "Is the Optimal Labor Income Tax Progressive in a Unionized Economy?," Umeå Economic Studies 587, Umeå University, Department of Economics.
  3. Mendoza, Enrique G. & Razin, Assaf & Tesar, Linda L., 1994. "Effective tax rates in macroeconomics: Cross-country estimates of tax rates on factor incomes and consumption," Journal of Monetary Economics, Elsevier, vol. 34(3), pages 297-323, December.
  4. Boeters, Stefan, 2010. "Optimal tax progressivity in unionised labour markets: Simulation results for Germany," ZEW Discussion Papers 10-035, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Francesco Daveri & Guido Tabellini, 2000. "Unemployment, growth and taxation in industrial countries," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 47-104, 04.
  6. Ben Lockwood & Torsten Sloek & Torben Tranaes, "undated". "Progressive Taxation and Wage Setting: Some Evidence for Denmark," EPRU Working Paper Series 95-20, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  7. Thomas Aronsson & Tomas Sjögren & Torbjörn Dalin, 2009. "Optimal taxation and redistribution in an OLG model with unemployment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(2), pages 198-218, April.
  8. Holmlund, B. & Kolm, A.S., 1995. "Progressive Taxation, Wage Setting, and Unemployment , Theory and Swedish Evidence," Papers 1995-15, Uppsala - Working Paper Series.
  9. Hersoug, Tor, 1984. "Union Wage Responses to Tax Changes," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 37-51, March.
  10. Ben Lockwood & Alan Manning, 1993. "Wage Setting and the Tax System: theory and Evidence for the UK," CEP Discussion Papers dp0115, Centre for Economic Performance, LSE.
  11. Knoester, Anthonie & van der Windt, Nico, 1987. "Real Wages and Taxation in Ten OECD Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(1), pages 151-169, February.
  12. Thomas Aronsson & Karl-Gustaf Löfgren & Tomas Sjögren, 2001. "Union Wage Setting and Capital Income Taxation in Dynamic General Equilibrium," German Economic Review, Verein für Socialpolitik, vol. 2(2), pages 141-175, 05.
  13. Lockwood, Ben & Manning, Alan, 1993. "Wage setting and the tax system theory and evidence for the United Kingdom," Journal of Public Economics, Elsevier, vol. 52(1), pages 1-29, August.
  14. Chamley, Christophe, 1986. "Optimal Taxation of Capital Income in General Equilibrium with Infinite Lives," Econometrica, Econometric Society, vol. 54(3), pages 607-622, May.
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