Andersen, Torben M.; Rasmussen, Bo Sandemann - 1997
The importance of the design of the income tax system for the incentive to supply effort is considered for both a … situation where firms (efficiency wage model) or unions (monopoly union model) have the power to determine wages. A tax reform … raising marginal taxes at all income levels and increasing (decreasing) average taxes at high (low) income levels may lead to …
