Arbeitspapier

Impacts of labor taxation with perfectly and imperfectly competitive domestic labor markets under flexible outsourcing

What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low-skilled and high-skilled workers constant in the case of heterogenous domestic labor markets, i.e. imperfect competition in low-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by raising the wage tax and the tax exemption for the low-skilled workers will decrease the wage rate and increase labour demand of low-skilled workers, whereas it will decrease (increase) employment of high-skilled workers in CES utility function when the elasticity of substitution between consumption and leisure is higher (lower) than one. A higher degree of wage tax progression for the high-skilled worker will have no effect on the high-skilled wage in the presence of CES and C-D utility function so this will have no total employment effects.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 4544

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Taxation and Subsidies: Incidence
Labor Force and Employment, Size, and Structure
Wage Level and Structure; Wage Differentials
Trade Unions: Objectives, Structure, and Effects
Thema
Flexible outsourcing
dual labor market
impacts of labour taxation
Optimale Besteuerung
Lohnsteuer
Dualer Arbeitsmarkt
Outsourcing
Qualifikation
Beschäftigungseffekt
Theorie

Ereignis
Geistige Schöpfung
(wer)
Koskela, Erkki
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2009

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Koskela, Erkki
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2009

Ähnliche Objekte (12)