Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101566
Authors: 
Goerke, Laszlo
Year of Publication: 
1997
Series/Report no.: 
Diskussionsbeiträge: Serie II, Sonderforschungsbereich 178 "Internationalisierung der Wirtschaft", Universität Konstanz 335
Abstract: 
Various taxes influence wage and employment outcomes in efficiency wage models. These findings are extended by incorporating more comprehensive tax functions, additional tax parameters, union-firm wage bargaining, and balanced budget restrictions. Moreover, the importance of different effort functions is evaluated. It is shown that higher marginal tax rates, holding constant the level of taxes, reduce wages and increase employment. Higher level of taxes on income, labour cost and value-added can raise unemployment.
Subjects: 
efficiency wages
effort function
taxes
unemployment
wage bargaining
JEL: 
E24
H24
H25
J41
Document Type: 
Working Paper

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