Tax Push Inflation in a Unionized Labour Market.
In this paper, the effect of changes in the average rate and in the progressivity of direct taxes on (1) the level of wages and (2) the extent to which cost-of-living increases are transmitted to wages are considered for a unionized labor market. These effects are derived theoretically for different...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
| Published: |
1987
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| Summary: | In this paper, the effect of changes in the average rate and in the progressivity of direct taxes on (1) the level of wages and (2) the extent to which cost-of-living increases are transmitted to wages are considered for a unionized labor market. These effects are derived theoretically for different union objectives and the models applied to data for Italian industry in a form which allows discrimination between these different objectives. The empirical estimates for the preferred model are then used to determine the effects of the postulated tax changes. |
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