HUNGERBUHLER, Mathias; YPERSELE, Tanguy VAN - In: Annales d'Economie et de Statistique (2014) 113-114
We introduce imperfect labor markets into the tax competition framework. Countries set tax rates on profit and income. Labor is immobile across countries, while capital is mobile. We show the importance of asymmetries in labor market institutions for the optimal tax policy. While most of the...