Progressive Taxation, Wage Bargaining, and Endogenous Working Time
Publikation: Working paper › Forskning
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Progressive Taxation, Wage Bargaining, and Endogenous Working Time. / Kreiner, Claus Thustrup.
Department of Economics, University of Copenhagen, 1996.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Progressive Taxation, Wage Bargaining, and Endogenous Working Time
AU - Kreiner, Claus Thustrup
N1 - JEL Classification: H24, J22, J41
PY - 1996
Y1 - 1996
N2 - This paper analyses the impact of tax reforms that decrease income tax progression in an equilibrium search model with wage bargaining and endogenous individual working time. The working time is either bargained together with the hourly wage (case 1) or determined solely by workers after bargaining over the wage (case 2). In both cases reducing tax progression increases working time of employed and, more interestingly, increases unambiguously wages and unemployment. Wages and unemployment rise more and working time and production less in case 1 compared to case 2; probably making case 2 countries best suited for such tax reforms
AB - This paper analyses the impact of tax reforms that decrease income tax progression in an equilibrium search model with wage bargaining and endogenous individual working time. The working time is either bargained together with the hourly wage (case 1) or determined solely by workers after bargaining over the wage (case 2). In both cases reducing tax progression increases working time of employed and, more interestingly, increases unambiguously wages and unemployment. Wages and unemployment rise more and working time and production less in case 1 compared to case 2; probably making case 2 countries best suited for such tax reforms
M3 - Working paper
BT - Progressive Taxation, Wage Bargaining, and Endogenous Working Time
PB - Department of Economics, University of Copenhagen
ER -
ID: 2984424