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Do Progressive Taxes Reduce Wage Pressure?

Author

Listed:
  • Wulfsberg, F.

Abstract

Increased tax progressivity raises the elasticity of labour demand with respect to consumer wages which implies that labour unions subtitute wages with employment. This paper investigates the effects to tax prograssivity on wages using Nerwegian establishment level panel data.

Suggested Citation

  • Wulfsberg, F., 1996. "Do Progressive Taxes Reduce Wage Pressure?," Memorandum 1996_038, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:1996_038
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    Citations

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    Cited by:

    1. Knut Røed & Steinar Strøm, 2002. "Progressive Taxes and the Labour Market: Is the Trade–off Between Equality and Efficiency Inevitable?," Journal of Economic Surveys, Wiley Blackwell, vol. 16(1), pages 77-110, February.
    2. Kåre Johansen, 2002. "Regional Wage Curves Empirical Evidence from Norway," Working Paper Series 0302, Department of Economics, Norwegian University of Science and Technology.
    3. Sorensen, Peter Birch, 1999. "Optimal tax progressivity in imperfect labour markets," Labour Economics, Elsevier, vol. 6(3), pages 435-452, September.

    More about this item

    Keywords

    WAGES; TAXATION; PANEL DATA;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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