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| Author: | Crombrugghe, A. de Walque, G. de |
| Title: | Wage and employment effects of a wage norm |
| Journal: | Economics of transition
2011 : JUL, VOL. 19:3, p. 541-561 |
| Index terms: | transition economies labour markets employment pay tax collection data analysis trade unions Poland |
| Freeterms: | excess wage tax wage norm |
| Language: | eng |
| Abstract: | The paper explores how a firm-level tax (or subsidy) on deviations from a pre-set wage norm may promote employment by rotating the labour demand curve perceived by the workers' union around the value of the norm as well as derives the conditions under which it yields a positive employment effect. The author tests and indicates the effect of the norm on the wages on a sample of Polish firms in 1990 and 1991. Significantly, the data support the role of the wage norm on the position of the perceived labour demand curve and the role of the tax rate on its slope. |
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