Exbrayat, Nelly; Gaigné, Carl; Riou, Stéphane - In: Canadian Journal of Economics 45 (2012) 4, pp. 1480-1503
We analyze the impact of labour market rigidities on tax competition between two imperfectly integrated countries. Following a shift from a competitive to a unionized labour market in both countries, the capital tax can be adjusted upward in the country with the less rigid labour market, whereas...