How Tax Progression Affects Effort and Employment

Within an efficiency wage framework, we study the effects of two revenue-neutral tax reformsthat change the progressivity of the labour tax system. A revenue-neutral increase in both thewage tax and tax exemption and a revenue-neutral change in the composition of labourtaxation towards the tax with the smaller tax base will lead to the same results: theymoderate wages, workers effort, effective labour input and aggregate output...

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Year of publication:	2007-06-01
Authors:	Koskela, Erkki ; Schöb, Ronnie
Institutions:	Forschungsinstitut zur Zukunft der Arbeit <Bonn>
Subject:	Effizienzlohn \| efficiency wage \| Besteuerung \| optimal taxation \| Steuerprogression \| tax progressivity

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Extent:	256000 bytes 27 p. application/pdf
Series:	IZA - Forschungsinstitut zur Zukunft der Arbeit - Discussion Papers IZA Discussion Paper ; No. 2861 (2007)
Type of publication:	Book / Working Paper
Language:	English
Classification:	H22 - Incidence ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; J48 - Public Policy ; Corporate taxation and accounting. Other aspects ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005862708