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| Author: | Aronsson, T. Löfgren, K.-G. Sjögren, T. |
| Title: | Wage setting and tax progressivity in dynamic general equilibrium |
| Journal: | Oxford Economic Papers
2002 : JUL, VOL. 54:3, p. 490-504 |
| Index terms: | Pay Income tax Labour markets |
| Language: | eng |
| Abstract: | The paper concerns the implications of progressive labour income taxation for wage determination in dynamic general equilibrium. The main purpose is to analyze the general equilibrium effects of increased tax progressivity in terms of the response in the real wage rate, employment, the capital stock, output and consumption. Among the results, the authors find that increased tax progressivity increases the real wage rate and decreases employment under both union and competitive wage formation. |
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