|
EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/35571
|
| | |
| Title: | | Is there scope for gains from revenue-neutral labor tax reforms with flexible outsourcing?  |
| Authors: | | Koskela, Erkki Poutvaara, Panu |
| Issue Date: | | 2009 |
| Series/Report no.: | | IZA discussion papers 3984 |
| Abstract: | | We study the effects of revenue-neutral labor tax reforms in an imperfectly competitive domestic labor market under Nash wage bargaining and flexible outsourcing. A revenue-neutral increase in the wage tax progression will decrease the negotiated wage rate, increase domestic labor demand and decrease international outsourcing. In the presence of wage tax exemption, a lower payroll tax and a higher wage tax will increase domestic labor demand and decrease international outsourcing. The effect on the negotiated wage rate is positive with sufficiently strong labor market imperfections, and ambiguous with sufficiently weak labor market imperfections. |
| Subjects: | | Flexible outsourcing wage bargaining employment tax-revenue neutral labor tax reforms |
| JEL: | | H11 H22 J41 J51 |
| Persistent Identifier of the first edition: | | urn:nbn:de:101:1-2009021683 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/35571
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|