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The effects of capital income taxation on wage formation

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  • Dalin, Torbjörn
  • Stage, Jesper

Abstract

In this paper, the effects of capital income taxation on wage formation are studied using OECD data. The results indicate that a rise in the tax rate on capital income will reduce real wages and increase employment.

Suggested Citation

  • Dalin, Torbjörn & Stage, Jesper, 2011. "The effects of capital income taxation on wage formation," Economics Letters, Elsevier, vol. 113(2), pages 186-188.
    • Handle: RePEc:eee:ecolet:v:113:y:2011:i:2:p:186-188
    DOI: 10.1016/j.econlet.2011.07.001
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    References listed on IDEAS

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    More about this item

    Keywords

    Capital taxation; Wage formation; Labour supply;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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