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Taxing Excess Wages to Promote Employment : The Case of Poland 1990-1991

Author

Listed:
  • de Crombrugghe, A
  • de Walque, G

Abstract

The paper analyzes theoretically and empirically how a firm level tax calculated on the average wage relative to a pre-set norm may promote employment. The theoretical model generalizes the discussion to the case of a subsidization of the average wage dept under the norm chosen by the government. We assume given labor demand and a monopoly union negotiating wages at the firm level in order to maximize the part of the wage bill exceeding the alternative wage.

Suggested Citation

  • de Crombrugghe, A & de Walque, G, 1997. "Taxing Excess Wages to Promote Employment : The Case of Poland 1990-1991," Papers 194, Notre-Dame de la Paix, Sciences Economiques et Sociales.
    • Handle: RePEc:fth:nodapa:194
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    More about this item

    Keywords

    TAXATION ; EMPLOYMENT;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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