IDEAS home Printed from https://ideas.repec.org/p/zbw/bofrdp/rdp2001_019.html
   My bibliography  Save this paper

Labour taxation and employment in trade union models: a partial survey

Author

Listed:
  • Koskela, Erkki

Abstract

This paper uses a union bargaining framework, where the wage rate is negotiated between the representatives of employees and employers and firms unilaterally determine employment, to discuss the relationship between labour taxation and employment.In imperfectly competitive labour markets higher labour taxes income and payroll taxes will increase labour costs and have negative effects on employment.Tax progression tends to moderate wages and boost employment.Moreover, if labour tax bases are unequal due to tax exemptions, the structure of labour taxation matters so that the tax wedge may not be a sufficient statistic to describe the channel of influence of labour taxation.Finally, distortionary effects of labour taxes in more corporatist economies should be smaller than in economies with more decentralised wage bargaining. Empirical evidence though not always very strong supports these notions.

Suggested Citation

  • Koskela, Erkki, 2001. "Labour taxation and employment in trade union models: a partial survey," Bank of Finland Research Discussion Papers 19/2001, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:rdp2001_019
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/211897/1/bof-rdp2001-019.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:bofrdp:rdp2001_019. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/bofgvfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.