Labour Taxation in a Unionised Economy with Home Production
This paper investigates the impact of payroll taxes on unemployment and welfare in a model with household production and union firm wage bargaining. It turns out that unemployment, most likely, falls with a reduced payroll tax in the market sector producing household substitutes (service sector), although the taxation in the rest of the economy needs to be raised. From a welfare point of view, in the presence of lump-sum taxes, it is optimal to subsidise the service sector, and the subsidy should be greater the more market power the negotiating units in the service sector exert in the wage bargains. Moreover, welfare improves with a reduced service sector payroll tax that is financed with higher distortionary taxes in the rest of the economy, if the two sectors are equally labour intensive.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||16 Feb 1998|
|Date of revision:|
|Publication status:||Published in Scandinavian Journal of Economics, 2000, pages 689-705.|
|Contact details of provider:|| Postal: |
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/Email:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:hhs:uunewp:1998_007. 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: (Katarina Grönvall)
If references are entirely missing, you can add them using this form.