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abatement of pollution. A decline in average labor taxes reduces unemployment if it generates lower pretax wages. Pretax wages … replacement ratio, and unions are willing to accept lower pretax wages because the net income loss from employment increases … progressivity. Economic theory suggests that higher progressivity could reduce unemployment. Suppose that wages are bargained over …
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Italy that combines Social Security earnings records for employees with detailed financial information for employers to … strong evidence of rent-sharing, with a "Lester range" of variation in wages between profitable and unprofitable firms of …
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We study the empirical relationship between labor taxation and pretax wages in Italy. We find that higher tax … progressivity increases pretax wages. To explain this result, we introduce in an informal way a relative wage effect and argue that … employment. The evidence on the effect of the average income tax rate on pretax wages is more mixed, but it also points to the …
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In the last decade we have seen extensive international research on the extent to which wages of individuals respond to … changing local labour market conditions. For many countries and periods, an inverse relationship between wages and unemployment …
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