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 …. Changes in labor taxation do not necessarily require that average labor taxes vary. In principle, a switch from payroll to … not support this possibility.When labor taxation is nonlinear, another opportunity is to vary the degree of labor tax …
