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| Author: | Egger, P. Seidel, T. |
| Title: | Tax competition, trade liberalization and imperfect labour markets |
| Journal: | Oxford Economic Papers
2011 : DEC, VOL. 63:4, p. 722-739 |
| Index terms: | labour markets free trade competition taxation trade barriers |
| Language: | eng |
| Abstract: | In this article, the connection between trade liberalization and imperfect labour markets for tax competition is studied. Rigid labour markets are shown to increase the mobility of the tax base compared to perfect labour markets resulting to lower Nash tax rates. Lower trade barriers show a similar effect. The results indicate that the imperfect labour market and the trade liberalization channels act interdependently. |
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