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Do Progressive Taxes Reduce Wage Pressure?


  • Wulfsberg, F.


Increased tax progressivity raises the elasticity of labour demand with respect to consumer wages which implies that labour unions subtitute wages with employment. This paper investigates the effects to tax prograssivity on wages using Nerwegian establishment level panel data.

Suggested Citation

  • Wulfsberg, F., 1996. "Do Progressive Taxes Reduce Wage Pressure?," Memorandum 38/1996, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:1996_038

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    References listed on IDEAS

    1. Dewatripont, Mathias, 1987. "The role of indifference in sequential models of spatial competition : An example," Economics Letters, Elsevier, vol. 23(4), pages 323-328.
    2. Edward C. Prescott & Michael Visscher, 1977. "Sequential Location among Firms with Foresight," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 378-393, Autumn.
    3. Spagat, Michael, 1992. "Validated equilibrium and sequential spatial competition games," Mathematical Social Sciences, Elsevier, vol. 24(1), pages 49-57, August.
    4. Nilssen, T. & Sorgard, L., 1996. "Strategic Location with Asymmetric Transportation Costs," Memorandum 35/1996, Oslo University, Department of Economics.
    5. Cancian, Maria & Bills, Angela & Bergstrom, Theodore, 1995. "Hotelling Location Problems with Directional Constraints: An Application to Television News Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 121-124, March.
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    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Kåre Johansen, 2002. "Regional Wage Curves Empirical Evidence from Norway," Working Paper Series 0302, Department of Economics, Norwegian University of Science and Technology.
    2. Sorensen, Peter Birch, 1999. "Optimal tax progressivity in imperfect labour markets," Labour Economics, Elsevier, vol. 6(3), pages 435-452, September.
    3. Roed, Knut & Strom, Steinar, 2002. " Progressive Taxes and the Labour Market: Is the Trade-Off between Equality and Efficiency Inevitable?," Journal of Economic Surveys, Wiley Blackwell, vol. 16(1), pages 77-110, February.

    More about this item



    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects


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