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Why is the public sector more labor-intensive? : A distortionary tax argument

Poutvaara, Panu (contributor); Wagener, Andreas (contributor) - 2004 - [Elektronische Ressource]

Government-run entities are often more labor-intensive than private companies, even with identical production … firms. A tax-favored treatment of public production precludes production efficiency. It reduces welfare when labor supply is … constant. With an elastic labor supply, a wage tax advantage of the public sector may improve welfare if it allows for a higher …

Persistent link: https://www.econbiz.de/10002504341

Is there scope for gains from revenue-neutral labor tax reforms with flexible outsourcing?

Koskela, Erkki; Poutvaara, Panu - 2009

We study the effects of revenue-neutral labor tax reforms in an imperfectly competitive domestic labor market under … negotiated wage rate, increase domestic labor demand and decrease international outsourcing. In the presence of wage tax … exemption, a lower payroll tax and a higher wage tax will increase domestic labor demand and decrease international outsourcing …

Persistent link: https://www.econbiz.de/10003808576

Pareto-improving bequest taxation

Grossmann, Volker (contributor); Poutvaara, Panu (contributor) - 2006

Altruistic parents may transfer resources to their offspring by providing education, and by leaving bequests. We show that in the presence of wage taxation, a small bequest tax may improve efficiency in an overlapping-generations framework with only intended bequests, by enhancing incentives of...

Persistent link: https://www.econbiz.de/10003465882

On the political economy of social security and public education

Poutvaara, Panu (contributor) - 2004 - [Elektronische Ressource]

This paper analyzes simultaneous voting on the wage tax rate and investment in public education with three overlapping generations and productivity differences inside each cohort. Wage tax revenue finances public education and social security benefits. The presence of productivity differences...

Persistent link: https://www.econbiz.de/10002501914

Outsourcing and labor taxation in dual labor markets

Koskela, Erkki (contributor); Poutvaara, Panu (contributor) - 2008

We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment … in dual labor markets. Outsourcing promotes wage dispersion between the high-skilled and low-skilled workers. Higher … reduce equilibrium unemployment of low-skilled workers both in the presence and absence of labor taxation. In the presence of …

Persistent link: https://www.econbiz.de/10003719633

The wedge

Goerke, Laszlo - 1999

It is often argued that the quantity which is traded on the market is independent of the side of the market which is taxed. However, this assertion need not hold, especially in imperfectly competitive markets like that for labour. Taking an efficiency wage economy as an example, it is shown that...

Persistent link: https://www.econbiz.de/10011313941

Employment effects of labour taxation in an efficiency wage model with alternative budget constraints and time horizons

Goerke, Laszlo - 2000

In an efficiency wage economy with variable profits, a shift from payroll to employment taxes will reduce unemployment if the tax level is held constant at the initial wage. However, unemployment will rise if firms are constrained to zero profits in the long-run and if tax revenues are constant....

Persistent link: https://www.econbiz.de/10011333288

Tax evasion in a unionised economy

Goerke, Laszlo - 2001

In a unionised labour market, a substitution of a payroll for an income tax will not alter employment if tax obligations are fulfilled. However, if workers or firms can evade taxes this irrelevance result might no longer apply. This will especially be the case if the fine for tax evasion depends...

Persistent link: https://www.econbiz.de/10011404003