-neutral change in the composition of labour taxation towards the tax with the smaller tax base will lead to the same results: they …Within an efficiency wage framework, we study the effects of two revenue-neutral tax reforms that change the … progressivity of the labour tax system. A revenue-neutral increase in both the wage tax and tax exemption and a revenue …

We evaluate the effects of international outsourcing and labor taxation on wage formation and equilibrium unemployment … domestic low-skilled wage tax, higher payroll tax and lower wage tax exemption increase optimal outsourcing. Outsourcing will … reduce equilibrium unemployment of low-skilled workers both in the presence and absence of labor taxation. In the presence of …

more competitive. To focus on this aspect, we analyze how flexible international outsourcing and labour taxation affect … wage tax progression of unskilled workers decreases the wage rate and increases the labour demand of unskilled workers. It …

outsourcing, wage tax and tax exemption in an imperfectly competitive labour markets when labour unions and firms negotiate wages … and the impacts of labour tax progression on domestic wage setting and employment. The wage elasticity of domestic labour … imperfections a lower outsourcing cost has a wage-moderating (wage-increasing) effect. Finally, increasing the degree of tax …

firms as outsourcing costs fall. With respect the impact of labor tax reforms that are well-established in the literature …: changes in the wage tax rate, the tax exemption and the unemployment benefit payments affect domestic wage setting in the same … way as in the absence of outsourcing. Furthermore, increasing the degree of tax progression by keeping the relative tax …

We study the effects of revenue-neutral labor tax reforms in an imperfectly competitive domestic labor market under … Nash wage bargaining and flexible outsourcing. A revenue-neutral increase in the wage tax progression will decrease the … negotiated wage rate, increase domestic labor demand and decrease international outsourcing. In the presence of wage tax …

What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low …-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by … raising the wage tax and the tax exemption for the low-skilled workers will decrease the wage rate and increase labour demand …