Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/75938 
Year of Publication: 
2002
Series/Report no.: 
CESifo Working Paper No. 721
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We model a two sector economy with unionized labor markets and competitive product markets, where workers and unions care about their relative wages, and show that the presence of a relative wage concern could help generation a positive relationship between tax progressivity and wage pressure.
Subjects: 
progressive taxation
relative wage effect
Document Type: 
Working Paper
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