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Increased tax progressivity raises the elasticity of labour demand with respect to consumer wages which implies that … labour unions subtitute wages with employment. This paper investigates the effects to tax prograssivity on wages using …
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We consider a model where a given number of firms decide on a pollution-reducing production technology, and then hire workers who subsequently form a monopoly union which sets the wage. We study the possibility of "double dividents", i.e. simultaneous reduction in pollution and increases in...
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