The impact of Union Power on the Optimal Income Tax Schedule
We explain the positive correlation between union power and tax progressivity from a normative point of view by integrating labour market frictions and union power in an optimal taxation framework. We find that unions and redistributive taxation are complementary in the sense that they both create inefficiencies that weaken each other. We find that strong unions incease welfare and efficiency when the government faces in adverse selection problem when redistributing income.
|Date of creation:||01 Oct 2004|
|Date of revision:|
|Contact details of provider:|| Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10473945
Web page: http://www.uclouvain.be/ires
More information through EDIRC
References listed on IDEAS
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.:
- J. A. Mirrlees, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Oxford University Press, vol. 38(2), pages 175-208.
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- Cyril Hariton & Gwen�el Piaser & Gwena�l Piaser, 2006.
"When Redistribution Leads to Regressive Taxation,"
2006_30, Department of Economics, University of Venice "Ca' Foscari".
- Hersoug, Tor, 1984. "Union Wage Responses to Tax Changes," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 37-51, March.
- Boone, Jan & Bovenberg, Lans, 2002.
"Optimal labour taxation and search,"
Journal of Public Economics,
Elsevier, vol. 85(1), pages 53-97, July.
- Thomas Aronsson & Tomas Sjögren, 2002.
"Income Taxation, Commodity Taxation and Provision of Public Goods under Labor Market Distortions,"
FinanzArchiv: Public Finance Analysis,
Mohr Siebeck, Tübingen, vol. 59(3), pages 347-, August.
- Aronsson, Thomas & Sjögren, Tomas, 2001. "Income Taxation, Commodity Taxation and Provision of Public Goods under Labor Market Distortions," Umeå Economic Studies 568, Umeå University, Department of Economics.
- Teulings,Coen & Hartog,Joop, 1998.
"Corporatism or Competition?,"
Cambridge University Press, number 9780521590730.
- Emmanuel Saez, 2002. "Optimal Income Transfer Programs: Intensive versus Extensive Labor Supply Responses," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 1039-1073.
- Mathias, HUNGERBUELHER & Etienne, LEHMANN & Alexis PARMENTIER & Bruno VAN DER LINDEN, 2003.
"Optimal Income Taxation in an Equilibrium Unemployment Model : Mirrlees meets Pissarides,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2003024, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- M. Hungerbühler & E. Lehmann & A. Parmentier & P. Van Der Linden, 2003. "Optimal Income Taxation in an Equilibrium Unemployment Model : Mirrlees meets Pissarides," Working Papers ERMES 0306, ERMES, University Paris 2.
- Boadway, Robin & Cuff, Katherine & Marchand, Maurice, 2000.
" Optimal Income Taxation with Quasi-linear Preferences Revisited,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 2(4), pages 435-60.
- Robin Boadway & Katherine Cuff & Maurice Marchand, 1999. "Optimal Income Taxation With Quasi-Linear Preferences Revisited," Working Papers 984, Queen's University, Department of Economics.
- BOADWAY, Robin & CUFF, Katherine & MARCHAND, Maurice, . "Optimal income taxation with quasi-linear preferences revisited," CORE Discussion Papers RP 1466, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
- Sorensen, Peter Birch, 1999. "Optimal tax progressivity in imperfect labour markets," Labour Economics, Elsevier, vol. 6(3), pages 435-452, September.
- Tuomala, Matti, 1990. "Optimal Income Tax and Redistribution," OUP Catalogue, Oxford University Press, number 9780198286059, May.
When requesting a correction, please mention this item's handle: RePEc:ctl:louvir:2004034. See general 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: (Anne DAVISTER-LOGIST)
If references are entirely missing, you can add them using this form.