Labor Tax Progressivity, Wage Determination, and the Relative Wage Effect
We model a two sector economy with unionized labor markets and competitive product markets, where workers and unions care about their relative wages, and show that the presence of a relative wage concern could help generation a positive relationship between tax progressivity and wage pressure.
|Date of creation:||2002|
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EPRU Working Paper Series
95-20, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
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