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 hump-shaped. Our empirical analysis of 20 OECD countries for the period 1997-2004 shows that higher tax progressivity increases pre-tax wages (and unemployment) in countries characterized by industry level wage bargaining, and reduces them in countries with local or fully centralized bargaining. © 2007 Oxford University Press.

Progressive Taxation and Wage Setting when Unions Strategically Interact

SONEDDA, Daniela
2007

Abstract

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 hump-shaped. Our empirical analysis of 20 OECD countries for the period 1997-2004 shows that higher tax progressivity increases pre-tax wages (and unemployment) in countries characterized by industry level wage bargaining, and reduces them in countries with local or fully centralized bargaining. © 2007 Oxford University Press.
https://academic.oup.com/oep/article/59/1/127/2274238
empirical analysis; labor market; OECD; tax system; trade union; wage
Brunello, G; Sonedda, Daniela
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11383/2140607
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