Optimal tax progressivity in unionised labour markets
"In labour markets with collective wage bargaining higher progressivity of the labour income tax creates a trade-off. On the one hand, wages are lowered and unemployment decreases, on the other hand, the individual labour supply decision is distorted at the hours-of-work margin. The optimal lev...
| Main Author: | |
|---|---|
| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
The Hague
2009
CPB |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19185923124919031059-optimal-tax-progressivity-in-u.htm |
| _version_ | 1771659894687006721 |
|---|---|
| author | Boeters, Stefan |
| author_facet | Boeters, Stefan |
| collection | Library items |
| description | "In labour markets with collective wage bargaining higher progressivity of the labour income tax creates a trade-off. On the one hand, wages are lowered and unemployment decreases, on the other hand, the individual labour supply decision is distorted at the hours-of-work margin. The optimal level of tax progressivity within this trade-off is determined using a numerical general equilibrium model with imperfect competition on the goods market, collective wage bargaining and a labour-supply module calibrated to empirically plausible elasticity values. The model is calibrated to macroeconomic and institutional parameters of both the OECD average and a number of individual OECD countries. In most cases the optimal degree of tax progressivity is below the actual level. A decomposition approach shows that the optimal level is increased by high unemployment and by the general tax level." |
| format | TEXT |
| geographic | OECD countries |
| id | 19185923124919031059_c33f22edd3684a3fb368f469741fa069 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19185923124919031059_c33f22edd3684a3fb368f469741fa069 |
| is_hierarchy_title | Optimal tax progressivity in unionised labour markets |
| language | English |
| physical | 41 p. Digital |
| publishDate | 2009 |
| publisher | The Hague CPB |
| spellingShingle | Boeters, Stefan collective bargaining labour market taxation unemployment Optimal tax progressivity in unionised labour markets |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=115784693396 |
| title | Optimal tax progressivity in unionised labour markets |
| topic | collective bargaining labour market taxation unemployment |
| url | https://www.labourline.org/KENTIKA-19185923124919031059-optimal-tax-progressivity-in-u.htm |