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How tax progression affects effort and employment

Koskela, Erkki; Schöb, Ronnie - 2007

Within an efficiency wage framework, we study the effects of two revenue-neutral tax reforms that change the progressivity of the labour tax system. A revenue-neutral increase in both the wage tax and tax exemption and a revenue-neutral change in the composition of labour taxation towards the...

Persistent link: https://www.econbiz.de/10010268228

Progressive taxation and irreversible investment under uncertainty

Alvarez, Luis H. R.; Koskela, Erkki - 2005

We analyze the impact of progressive taxation on irreversible investment under uncertainty. We show that if tax … exemption is lower than sunk cost, higher tax rate will decelerate optimal investment by increasing the optimal investment … investment threshold is a positive function of volatility, but independent of tax rate. For "medium" volatilities it is …

Persistent link: https://www.econbiz.de/10010261122

Equilibrium Unemployment and Investment Under Product and Labour Market Imperfections

Kauppi, Heikki; Koskela, Erkki; Stenbacka, Rune - 2004

We study the implications of product market competition and investment for price setting, wage bargaining and thereby …

Persistent link: https://www.econbiz.de/10010261822

Tax progression under collective wage bargaining and individual effort determination

Koskela, Erkki; Schöb, Ronnie - 2007

We study the impact of tax policy on wage negotiations, workers' effort, employment, output and welfare when workers' effort is only imperfectly observable. We show that the different wage-setting motives - rent sharing and effort incentives - reinforce the effects of partial tax policy measures...

Persistent link: https://www.econbiz.de/10010264151

Taxation and rotation age under stochastic forest stand value

Alvarez, Luis H. R.; Koskela, Erkki - 2004

The paper uses both the single rotation and ongoing rotation framework to study the impact of yield tax, lump-sum tax, cash flow tax and tax on interest rate earnings on the privately optimal rotation period when forest value growth is stochastic and forest owners are either risk neutral or risk...

Persistent link: https://www.econbiz.de/10010270560

Outsourcing of unionized firms and the impacts of labour market policy reforms /

Koskela, Erkki; Schöb, Ronnie - 2008

This paper shows that outsourcing of parts of the workforce in unionized firms leads to wage moderation and as long as the share of the outsourced workforce is not too large, this wage-moderation effect on domestic employment outweighs the direct substitution effect so that domestic employment...

Persistent link: https://www.econbiz.de/10010264407

Outsourcing of unionized firms and the impact of labor market policy reforms

Koskela, Erkki; Schöb, Ronnie - 2008

This paper shows that outsourcing of parts of workforce in unionized firms leads to wage moderation both in the case of strategic and flexible outsourcing and as long as the share of the outsourced workforce is not too large, this wage-moderation effect on domestic employment outweighs the...

Persistent link: https://www.econbiz.de/10010268915

Is there scope for gains from revenue-neutral labor tax reforms with flexible outsourcing?

Koskela, Erkki; Poutvaara, Panu - 2009

We study the effects of revenue-neutral labor tax reforms in an imperfectly competitive domestic labor market under Nash wage bargaining and flexible outsourcing. A revenue-neutral increase in the wage tax progression will decrease the negotiated wage rate, increase domestic labor demand and...

Persistent link: https://www.econbiz.de/10010269142

Green tax reform and competitiveness

Koskela, Erkki; Schöb, Ronnie; Sinn, Hans-Werner - 2000

This paper studies a revenue-neutral green tax reform that substitutes energy for wage taxes in an open economy with unemployment. As long as the labour tax rate exceeds the energy tax rate, such a reform will increase employment, reduce the domestic firms' unit cost of production and hence...

Persistent link: https://www.econbiz.de/10010285164

Equilibrium unemployment and capital intensity under product and labor market imperfections

Kauppi, Heikki; Koskela, Erkki; Stenbacka, Rune - 2004

We study the implications of product and labor market imperfections for equilibrium unemployment under both exogenous and endogenous capital intensity. With endogenous capital intensity, stronger labor market imperfections always increase equilibrium unemployment. The relationship between the...

Persistent link: https://www.econbiz.de/10010261119