A positive analysis of labor-market institutions and tax reforms

Upmann T (2009)
International Tax and Public Finance 16(5): 621-646.

Journal Article | Published | English

No fulltext has been uploaded

Author
Abstract
In this paper, we investigate the structure of the "Laffer curve" for taxes on labor and other factors of production, under different institutional frameworks of the labor market. Using a Cobb-Douglas production technology allows us to characterize important properties of the "Laffer curve" in terms of the wage share for a competitive labor market, the monopoly union model, the right-to-manage approach, the insider-dominated union, and efficient Nash bargains simultaneously. In this way, we are able to highlight the menu of factor tax systems, and thus of potential tax reforms available to a government, without perfect knowledge of the mechanism of the labor market. In particular, we show that the employment-maximizing tax system features a constant energy tax, while the energy mini-/maximizing tax system features a constant labor tax. We also illuminate to what extent these results must be modified if we either employ a CES production function, or if we allow for an endogenous reservation wage.
Publishing Year
ISSN
eISSN
PUB-ID

Cite this

Upmann T. A positive analysis of labor-market institutions and tax reforms. International Tax and Public Finance. 2009;16(5):621-646.
Upmann, T. (2009). A positive analysis of labor-market institutions and tax reforms. International Tax and Public Finance, 16(5), 621-646.
Upmann, T. (2009). A positive analysis of labor-market institutions and tax reforms. International Tax and Public Finance 16, 621-646.
Upmann, T., 2009. A positive analysis of labor-market institutions and tax reforms. International Tax and Public Finance, 16(5), p 621-646.
T. Upmann, “A positive analysis of labor-market institutions and tax reforms”, International Tax and Public Finance, vol. 16, 2009, pp. 621-646.
Upmann, T.: A positive analysis of labor-market institutions and tax reforms. International Tax and Public Finance. 16, 621-646 (2009).
Upmann, Thorsten. “A positive analysis of labor-market institutions and tax reforms”. International Tax and Public Finance 16.5 (2009): 621-646.
This data publication is cited in the following publications:
This publication cites the following data publications:

Export

0 Marked Publications

Open Data PUB

Web of Science

View record in Web of Science®

Search this title in

Google Scholar