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.
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- Fehr, Ernst & Schmidt, Klaus M., 1999.
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20650, University of Munich, Department of Economics.
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- A. Jorge Padilla & Samuel Bentolila & Juan J. Dolado, 1996.
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9616, Banco de Espa�a.
- Holmlund, B. & Kolm, A.S., 1995.
"Progressive Taxation, Wage Setting, and Unemployment , Theory and Swedish Evidence,"
1995-15, Uppsala - Working Paper Series.
- Holmlund, B. & Kolm, A.S., 1995. "Progressive Taxation, Wage Setting and Unemployment - Theory and Swedish Evidence," Papers 15, Uppsala - Working Paper Series.
- 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.
- Dowrick, Steve, 1989. "Union-Oligopoly Bargaining," Economic Journal, Royal Economic Society, vol. 99(398), pages 1123-42, December.
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