Progressive taxation and wage setting when unions strategically interact

Giorgio Brunello, Daniela Sonedda

Risultato della ricerca: Contributo su rivistaArticolo in rivistapeer review

Abstract

In a multisector economy with unionized labor markets, the interdependence of union wage claims - typical of industrial bargaining - affects the relationship between tax progressivity and wage pressure, which varies in a nonlinear fashion with the nature of the wage bargain, and can be hump-shaped. Our empirical analysis of 20 OECD countries for the period 1997-2004 shows that higher tax progressivity increases pre-tax wages (and unemployment) in countries characterized by industry level wage bargaining, and reduces them in countries with local or fully centralized bargaining.

Lingua originaleInglese
pagine (da-a)127-140
Numero di pagine14
RivistaOxford Economic Papers
Volume59
Numero di pubblicazione1
DOI
Stato di pubblicazionePubblicato - gen 2007

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