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 originale | Inglese |
---|---|
pagine (da-a) | 127-140 |
Numero di pagine | 14 |
Rivista | Oxford Economic Papers |
Volume | 59 |
Numero di pubblicazione | 1 |
DOI | |
Stato di pubblicazione | Pubblicato - gen 2007 |