Brunello, Giorgio; Parisi, Maria Luisa; Sonedda, Daniela - 2002
replacement ratio, and unions are willing to accept lower pretax wages because the net income loss from employment increases … taxes are not fully absorbed by offsetting changes in the after tax wage and affect both pretax wages and employment;b) the … abatement of pollution. A decline in average labor taxes reduces unemployment if it generates lower pretax wages. Pretax wages …
