This paper investigates the proposition that a progressive tax system contributes to wage moderation. We continue the work of Lockwood and Manning (1993), who considered macro date for the UK, by looking at Danish wage equations for different earnings levels. Our main conclusions are that...

The proposition that a progressive tax system contributes to wage moderation is studied using Danish earnings data disaggregated by occupation, gender and earnings level. Our main conclusions are that income-tax progression affects wage setting, but whether it moderates or exaggerates wage...

This paper shows how the institutional rules imposed on its signatories by the GATT created a strategic incentive for countries to liberalize gradually. Free trade can never be achieved if punishment for deviation from a trade agreement is limited to a 'withdrawal of equivalent concessions.'...