We model a two sector economy with unionized labor markets and competitive product markets, where workers and unions care about their relative wages, and show that the presence of a relative wage concern could help generation a positive relationship between tax progressivity and wage pressure.

In a multisector economy with unionized labor markets, the interdependence of union wage claims--typical of industrial bargaining--affects the relationship between tax progressivity and wage pressure, which varies in a nonlinear fashion with the nature of the wage bargain, and can be...

This article considers the relationship between labor income taxes and output. An illustrative model indicates that the sign of the output effect of labor taxation policies is ambiguous and depends not only on the technology parameters but also on the taxation level. The empirical evidence for...

This paper presents some empirical evidence for Italy from 1974 to 1995 on the relationship between the dynamics of unemployment and tax progressivity. To this purpose, the econometric tool is a Bayesian numerical approach based on a three-equation vector autoregression model where the...

We use the regional and time variation of training grants in Italy to identify the causal effect of (formal continuing vocational) training on earnings. We estimate log-linear earnings regressions with constant marginal returns to training and find that one additional week of training increases...

We estimate structural quantile treatment effects to analyze the relationship between household income and sorting into private or public education, using Italian data. Public education provision is redistributive when rich families, who contribute to its financing, find it optimal to sort out...

One of the main arguments against a public finance solution to unemployment is that, at least in the long run, the tax burden is passed onto labour. This paper presents a general equilibrium model on the relation among tax progressivity, wage setting and employment where changes in labour...

We model the individuals' investment in physical capital and education decisions in presence of borrowing constraints and a progressive taxation system. Our empirical evidence for 15 OECD countries supports the theoretical model predictions according to which the effects on growth of higher...

This paper presents a Structural VAR analysis on the employment and output effects of labour tax policies in six European countries for the period 1974-1997. By considering impulse response functions, it turns out that, on average, a shock to the total personal income tax revenues is positively...