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Labour Market Rents and Irish Industrial Policy

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  • Frank Walsh

    (University College Dublin)

Abstract

This paper examines the issue of whether harmonising taxes across the traded and nontraded sectors is desirable. Preferential treatment for the traded sector might be justified if either the output response of subsidies are higher in the traded sector or if the jobs generated in the traded sector are “better” than those in the non-traded sector. I examine these two issues using a simple two sector small open economy model to analyse the first question and input-output analysis to analyse the second. I conclude that there is no compelling argument for lower taxes on the traded sector.

Suggested Citation

  • Frank Walsh, 1999. "Labour Market Rents and Irish Industrial Policy," The Economic and Social Review, Economic and Social Studies, vol. 30(4), pages 363-380.
    • Handle: RePEc:eso:journl:v:30:y:1999:i:4:p:363-380
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    File URL: http://www.esr.ie/vol30_4/2_Walsh.pdf
    File Function: First version, 1999
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    References listed on IDEAS

    as
    1. Patrick Honohan, 1996. "Methodological Issues in Evaluation of Irish Industrial Policy," Papers WP069, Economic and Social Research Institute (ESRI).
    2. Kevin H. O'Rourke, 1993. "Industrial policy, employment policy and the non-traded sector," Working Papers 199415, School of Economics, University College Dublin.
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    Cited by:

    1. Nooraddin Sharify, 2007. "A New Approach to Compare the Impact of Direct and Indirect Payments on Regional Macroeconomic Indices," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 12(1), pages 193-211, winter.

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    More about this item

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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