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Author:Hansen, C. T.
Title:Lower tax progression, longer hours and higher wages
Journal:Scandinavian Journal of Economics
1999 : VOL. 101:1, p. 49-65
Index terms:TAXATION
WAGE DETERMINATION
BARGAINING
LABOUR SUPPLY
Language:eng
Abstract:Lower progressivity reduces the distorting effects on labour supply which reduce wages and increase aggregate employment and activity. High progressivity tends to reduce the impact of labour market imperfections, e.g. wage bargaining, thereby leading to the opposite consequences. This study includes both types of effects in an equilibrium search framework.
SCIMA record nr: 199437
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