Progressive Taxation and Wage Setting: Some Evidence for Denmark.
The proposition that a progressive tax system contributes to wage moderation is studied using Danish earnings data disaggregated by occupation, gender and earnings level. Our main conclusions are that income-tax progression affects wage setting, but whether it moderates or exaggerates wage pressure is income dependent. An increase in progressivity reduces the pre-tax earnings of middle-income workers (manual male workers and moderate income earners among both male and female non-manual workers). The reverse is found for high-income earners (non-manual male workers), in that an increase in progressivity tends to raise pre-tax earnings. Finally, there is no significant effect of tax progressivity on the wages of low-income earners. Copyright 2000 by The editors of the Scandinavian Journal of Economics.
Year of publication: |
2000
|
---|---|
Authors: | Lockwood, Ben ; Slok, Torsten ; Tranaes, Torben |
Published in: |
Scandinavian Journal of Economics. - Wiley Blackwell, ISSN 1467-9442. - Vol. 102.2000, 4, p. 707-23
|
Publisher: |
Wiley Blackwell |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Progressive taxation and wage setting : some evidence for Denmark
Lockwood, Ben, (1995)
-
Progressive Taxation and Wage Setting: Some Evidence for Denmark.
Lockwood, Ben,
-
ARTICLES - Progressive Taxation and Wage Setting: Some Evidence for Denmark.
Lockwood, Ben, (2000)
- More ...