In a unionised labour market, a substitution of a payroll for an income tax will not alter employment if tax … especially be the case if the fine for tax evasion depends on undeclared income or on wage payments or if withholding regulations … prevent optimal evasion choices. In such instances, tax evasion opportunities make the legal incidence of taxes an important …

This paper analyzes simultaneous voting on the wage tax rate and investment in public education with three overlapping … generations and productivity differences inside each cohort. Wage tax revenue finances public education and social security … solved by trigger strategies which do not punish upward deviations in the wage tax rate. If there are multiple equilibria …

technologies. This need not imply slack in the public sector, but may be a rational response to its wage tax advantage over private … firms. A tax-favored treatment of public production precludes production efficiency. It reduces welfare when labor supply is … constant. With an elastic labor supply, a wage tax advantage of the public sector may improve welfare if it allows for a higher …

relatively small 'home' country and a large 'foreign' country. It compares the economic performance of two alternative tax … systems as a means to finance unemployment benefits: a sales-tax-cum-labor-subsidy system versus a wage tax system. The two … systems are applied to the home country, while the wage tax system always obtains in the foreign country. In stark contrast …

wage tax progression of unskilled workers decreases the wage rate and increases the labour demand of unskilled workers. It …

of various labor tax cut scenarios. The focus is on skill heterogeneity combined with downward wage rigidities at the low … end of the skill ladder. Workers can take jobs for which they are overeducated. We compare targeted and non-targeted tax …, productivity and welfare effects of a tax cut, although tax cuts targeted on the least skilled workers always have larger effects …