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Author:Aronsson, T.
Wikström, M.
Brännlund, R.
Title:Wage determination under non-linear taxes: Estimation and an application to panel data
Journal:Oxford Economic Papers
1997 : JUL, VOL. 49:3, p. 404-418
Index terms:WAGE DETERMINATION
TAXATION
LABOUR MARKETS
Language:eng
Abstract:This article examines wage determination under piecewise linear taxes in a unionised labor market, to model how piecewise linear taxation affects the choice set of the union, and to take this information into account in the estimation. Piecewise linear taxes necessitates formal assumptions about the sources of randomness, and it was found that both unobserved heterogeneity and measurement errors in the wage rate are important to consider in the estimation. It was also found that taxes are likely to have a non-leglible impact on the wage rate.
SCIMA record nr: 165523
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