Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing

"What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low-skilled and high-skilled workers constant in the case of heterogenous domestic labor markets, i.e. imperfect competition in low-skilled labor and perfect competition in high-skilled...

Full description

Bibliographic Details
Main Author: Koskela, Erkki
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Bonn 2009
IZA
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19178368124919965409-impacts-of-labor-taxation-with.htm
_version_ 1771659901642211330
author Koskela, Erkki
author_facet Koskela, Erkki
collection Library items
description "What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low-skilled and high-skilled workers constant in the case of heterogenous domestic labor markets, i.e. imperfect competition in low-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by raising the wage tax and the tax exemption for the low-skilled workers will decrease the wage rate and increase labour demand of low-skilled workers, whereas it will decrease (increase) employment of high-skilled workers in CES utility function when the elasticity of substitution between consumption and leisure is higher (lower) than one. A higher degree of wage tax progression for the high-skilled worker will have no effect on the high-skilled wage in the presence of CES and C-D utility function so this will have no total employment effects."
format TEXT
geographic EU countries
id 19178368124919965409_65ab8b57d66c4a8c9e809885ca2e0cf5
institution ETUI-European Trade Union Institute
is_hierarchy_id 19178368124919965409_65ab8b57d66c4a8c9e809885ca2e0cf5
is_hierarchy_title Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing
language English
physical 35 p.
Digital
publishDate 2009
publisher Bonn
IZA
spellingShingle Koskela, Erkki
employment
outsourcing
taxation
wage determination
Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=114736893291
title Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing
topic employment
outsourcing
taxation
wage determination
url https://www.labourline.org/KENTIKA-19178368124919965409-impacts-of-labor-taxation-with.htm