We study the impact of transfer pricing rules on sales prices, firms’ organizational structure, andconsumers’ utility within a two-country monopolistic competition model featuring source-basedprofit taxes that differ across countries. Firms can either become multinationals, i.e., they serve...

We develop a model of commodity tax competition with monopolistically competitive internationallymobile firms, transport costs, and asymmetric country sizes. We investigate the impacts of noncooperativetax setting, as well as of tax harmonization and changes in the tax principle, in both...

The analysis presented in this paper defines three different synthetic measurements ofdisincentives for formal work: two standard measurements, namely the tax wedge and themarginal effective tax rate (METR); and a new, innovative measurement called formalizationtax rate (FTR). The novelty of the...

Worker-level panel data are used to analyse the separate employment effects of increases in the social security taxes paid by employers and increases in the minimum wage in Turkey between 2002 and 2005. Variation over time and among low-wage workers in the ratio of total labour costs to the...

We re-examine the labor donation theory of not-for-profits and show that these organizations may exist notnecessarily because motivated workers prefer to work in them, or that they dominate for-profits in terms ofwelfare, but because the excess supply of motivated workers makes the non-profit...

About one in four workers challenges her dismissal in front of a labor court in France. Using adata set of individual labor disputes brought to French courts over the years 1996 to 2003,we examine the impact of labor court activity on labor market flows. First, we present asimple theoretical...

This paper studies the effects on registered employment, earnings, and number of registered establishments of two employment subsidy schemes in Turkey. We implement a difference-in-differences methodology to construct appropriate counterfactuals for the covered provinces...

In view of rising wage inequality and increasing poverty, the introduction of a legal minimum wage has recently become an important policy issue in Germany. We analyze the distributional effects of the introduction of a nationwide legal minimum wage of 7.5 per hour on the basis of a...

Using a matched firm-worker dataset, we show both theoretically and empirically that positiveassortative matching between firms...

On theoretical grounds, monitoring of top executives by the (supervisory) board is expectedto be value relevant. The empirical evidence is ambiguous and we analyze three noncompetingexplanations for this ambiguity: (i) The positive effect on firm value of boardmonitoring is hidden in stock price...