Brunello, Giorgio (contributor); Comi, Simona (contributor); … - 2006
supply is endogenous, the effect of tax progressivity on wages is
1
As …=τ
3
, expected gross
wages and taxes are respectively θμbaEW += and
22
)()(
ε
σλθμ bbaTWET ++= [4]
where …: www.hmrc.gov.uk/
References
• Altonji, J. and Shakotko, R., 1987, Do wages rise with seniority?, The Review of …