Progressive Taxation and Wage Setting: Some Evidence for Denmark
This paper investigates the proposition that a progressive tax system contributes to wage moderation. We continue the work of Lockwood and Manning (1993), who considered macro date for the UK, by looking at Danish wage equations for different earnings levels. Our main conclusions are that income-tax progression affects wage setting, but whether it moderates or exaggerates wage pressure is income dependent. For the main middle-income groups (blue-collar men and moderate income earners among both male and female white-collar workers) an increase in progressivity reduces the pre-tax wages, whereas for the high- and low-income earners (male white collar and female workers, respectively) this is not the case. In fact for the high-income earners an increase in progressivity increases the pre-tax wages. Furthermore, our analysis suggests that changes in tax progression may explain changes in wage differentials.
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:|
|Contact details of provider:|| Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark|
Phone: (+45) 3532 4411
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk/epru/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:kud:epruwp:95-20. 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: (Thomas Hoffmann)
If references are entirely missing, you can add them using this form.