Egger, Peter; Radulescu, Doina Maria - CESifo - 2008
multinational enterprise. We set up a stylized partial equilibrium model and, presuming that worker effort is a function of net … wages, assume that a higher employee-borne tax burden reduces effort. In turn, this raises a firm’s production costs and …’s profit by reducing manager effort. Furthermore, we compile data on personal income tax profiles for 49 economies and the year …