Tax Progression in Imperfect Labour Markets : A Survey

Hungerbuelher, Mathias
(2004)

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  • Hungerbuelher, Mathias
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Abstract
We look at the effect of tax progression in imperfect labour markets. The models considered are union models, an equilibrium search model with wage bargaining, an equilibrium search model with wage posting by firms and efficiency wage models. We find that in all basic models, an increase in tax progression leads to lower wages and higher employement. Extensions of the models can however change these results.
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Hungerbuelher, M. (2004). Tax Progression in Imperfect Labour Markets : A Survey (ECON Discussion Papers 2004/82). https://hdl.handle.net/2078.5/130250