Tax Progressivity and the Trade Union’s Fallback-Option


Boeters, Stefan


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URL: http://ub-madoc.bib.uni-mannheim.de/429
URN: urn:nbn:de:bsz:180-madoc-4293
Document Type: Working paper
Year of publication: 2002
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J51 H20 ,
Subject headings (SWD): Steuer , Arbeitslosigkeit , Steuerreform , Arbeitsmarkt
Abstract: When we analyse the labour market consequences of labour tax reforms in a model of firm-union wage bargaining, minor changes in the formulation of the union’s fallback option can have drastic effects. This paper compares two variants of the model in which either workers have no reemployment opportunity or the probability of employment in another sector is determined by the overall unemployment rate. It is argued both on analytical and numerical grounds that the second alternative is the only plausible one. This conclusion is confirmed by an explicit integration of workers' inter-sectoral mobility into the model.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Boeters, Stefan (2002) Tax Progressivity and the Trade Union’s Fallback-Option. Open Access [Working paper]
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