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Does competition in the labor market affect wage inequality? Standard textbook monopsony models predict that lower employer labor market power reduces wage dispersion. We test this hypothesis using Social Security data from Lithuania. We first fit a two-way fixed effects model to quantify the...
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We study the elasticity of taxable labour income in the Netherlands. We use a large and rich data set, including both … marginal tax rates at different segments of the income distribution. For all workers, we find an elasticity of 0.10 in the … find that the elasticity is higher for higher incomes and women. Also, we find that the elasticity of taxable labour income …
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