Arbeitspapier
How tax progression affects effort and employment
Within an efficiency wage framework, we study the effects of two revenue-neutral tax reforms that change the progressivity of the labour tax system. A revenue-neutral increase in both the wage tax and tax exemption and a revenue-neutral change in the composition of labour taxation towards the tax with the smaller tax base will lead to the same results: they moderate wages, workers' effort, effective labour input and aggregate output. Whether employment rises or falls, however, depends in both reforms on the magnitude of the pre-reform total tax wedge. The larger this tax wedge is, the more negative is the impact of reforms on workers' effort. A larger total tax wedge increases the negative effect of tax progression on labour productivity and thus thwarts the positive employment effect of wage moderation.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 2861
- Klassifikation
-
Wirtschaft
- Thema
-
Lohnsteuer
Steuerreform
Steuerprogression
Steuerwirkung
Arbeitsproduktivität
Beschäftigungseffekt
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Koskela, Erkki
Schöb, Ronnie
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2007
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Koskela, Erkki
- Schöb, Ronnie
- Institute for the Study of Labor (IZA)
Entstanden
- 2007
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