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Labour market rents and Irish industrial policy

Author

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  • Frank Walsh

Abstract

This paper examines the issue of whether harmonising taxes across the traded and nontraded sectors is desirable. Preferential treatment for the traded sector might be justified if either the output response of subsidies are higher in the traded sector or if the jobs generated in the traded sector are “better” than those in the non-traded sector. I examine these two issues using a simple two sector small open economy model to analyse the first question and input-output analysis to analyse the second. I conclude that there is no compelling argument for lower taxes on the traded sector.

Suggested Citation

  • Frank Walsh, 1999. "Labour market rents and Irish industrial policy," Open Access publications 10197/183, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:oapubs:10197/183
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    File URL: http://hdl.handle.net/10197/183
    File Function: Open Access version, 1999
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    Cited by:

    1. Nooraddin Sharify, 2007. "A New Approach to Compare the Impact of Direct and Indirect Payments on Regional Macroeconomic Indices," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 12(1), pages 193-211, winter.

    More about this item

    Keywords

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    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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