User menu

Beyond the labour income tax wedge: the unemployment-reducing effect of tax progressivity

Bibliographic reference Lehmann, Etienne ; Lucifora, Claudio ; Moriconi, Simone ; Van der Linden, Bruno. Beyond the labour income tax wedge: the unemployment-reducing effect of tax progressivity. In: International Tax and Public Finance, Vol. 23, no. 3, p. 454-489 (June 2016)
Permanent URL
  1. Alesina Alberto, Cohen Gerald D., Roubini Nouriel, MACROECONOMIC POLICY AND ELECTIONS IN OECD DEMOCRACIES, 10.1111/j.1468-0343.1992.tb00052.x
  2. Alesina Alberto, Cohen Gerald D., Roubini Nouriel, Electoral business cycle in industrial democracies, 10.1016/0176-2680(93)90027-r
  3. Algan, Y., & Cahuc, P. (2006). Civic attitudes and the design of labour market institutions: Which countries can implement the Danish flexicurity model? Technical report 5489, CEPR discussion papers.
  4. Algan Yann, Cahuc Pierre, Inherited Trust and Growth, 10.1257/aer.100.5.2060
  5. Algan, Y., Cahuc, P., & Sangnier, M. (2011). Efficient and inefficient welfare states. Technical report 5445, IZA discussion papers.
  6. Algan Y., Cahuc P., Zylberberg A., Public employment and labour market performance, 10.1111/1468-0327.00083
  7. Ardagna Silvia, Fiscal stabilizations: When do they work and why, 10.1016/j.euroecorev.2003.09.010
  8. Bassanini A., Duval R., Unemployment, institutions, and reform complementarities: re-assessing the aggregate evidence for OECD countries, 10.1093/oxrep/grp004
  9. Bean C. R., Layard P. R. G., Nickell S. J., The Rise in Unemployment: A Multi-Country Study, 10.2307/2554371
  10. Belot M., Does the recent success of some OECD countries in lowering their unemployment rates lie in the clever design of their labor market reforms?, 10.1093/oep/gpf057
  11. Blanchard Olivier, Wolfers Justin, The Role of Shocks and Institutions in the Rise of European Unemployment: the Aggregate Evidence, 10.1111/1468-0297.00518
  12. Blundell R., Shephard A., Employment, Hours of Work and the Optimal Taxation of Low-Income Families, 10.1093/restud/rdr034
  13. Brunello G., Sonedda D., Progressive taxation and wage setting when unions strategically interact, 10.1093/oep/gpl027
  14. Cahuc, P., Carcillo, S., & Barbanchon, T. L. (2014). Hiring subsidies in bad times: Do they work? Technical report, IZA discussion paper.
  15. Cahuc Pierre, Marque Francois, Wasmer Etienne, A THEORY OF WAGES AND LABOR DEMAND WITH INTRA-FIRM BARGAINING AND MATCHING FRICTIONS*, 10.1111/j.1468-2354.2008.00502.x
  16. Cahuc, P., & Zylberberg, A. (2004). Labor economics. Cambridge: MIT Press.
  17. Daveri F., Tabellini G., Unemployment, growth and taxation in industrial countries, 10.1111/1468-0327.00057
  18. Devries, P., Guajardo, J., Leigh, D., & Pescatori, A. (2011). A new action-based dataset of fiscal consolidation. Technical report 11/128, IMF working papers.
  19. Diamond Peter A., Wage Determination and Efficiency in Search Equilibrium, 10.2307/2297271
  20. Drazen, A. (2000). Political Economy in Macroeconomics. Princeton: Princeton University Press.
  21. Eissa N., Liebman J. B., Labor Supply Response to the Earned Income Tax Credit, 10.2307/2946689
  22. Falk Martin, Koebel Bertrand, A dynamic heterogeneous labour demand model for German manufacturing, 10.1080/00036840122012
  23. Fuest Clemens, Huber Bernd, Is tax progression really good for employment? A model with endogenous hours of work, 10.1016/s0927-5371(99)00027-5
  24. Griffith Rachel, Harrison Rupert, Macartney Gareth, Product Market Reforms, Labour Market Institutions and Unemployment, 10.1111/j.1468-0297.2007.02039.x
  25. Guichard Stéphanie, Kennedy Mike, Wurzel Eckhard, André Christophe, What Promotes Fiscal Consolidation, 10.1787/180833424370
  26. Guiso Luigi, Sapienza Paola, Zingales Luigi, Long Term Persistence, 10.2139/ssrn.1259859
  27. Hamermesh, D. S. (1993). Labor demand. Princeton: Princeton University Press.
  28. Hansen Claus Thustrup, Lower Tax Progression, Longer Hours and Higher Wages, 10.1111/1467-9442.00140
  29. Hansen Claus Thustrup, Pedersen Lars Haagen, Sløk Torsten, Ambiguous effects of tax progressivity — theory and Danish evidence, 10.1016/s0927-5371(00)00004-x
  30. Heckman, J. J. (1993). What has been learned about labor supply in the past twenty years? The American Economic Review, 83(2), 116–121.
  31. HERSOUG TOR, UNION WAGE RESPONSES TO TAX CHANGES * , 10.1093/oxfordjournals.oep.a041626
  32. Holmlund, B., & Kolm, A. S. (1995). Progressive taxation, wage setting and unemployment: Theory and Swedish evidence. Swedish Economic Policy Review, 2, 423–460.
  33. Hosios Arthur J., On the Efficiency of Matching and Related Models of Search and Unemployment, 10.2307/2297382
  34. HUNGERBUHLER MATHIAS, LEHMANN ETIENNE, PARMENTIER ALEXIS, VAN DER LINDEN BRUNO, Optimal Redistributive Taxation in a Search Equilibrium Model, 10.1111/j.1467-937x.2006.00394.x
  35. Immervoll Herwig, Kleven Henrik Jacobsen, Kreiner Claus Thustrup, Saez Emmanuel, Welfare reform in European countries: a microsimulation analysis, 10.1111/j.1468-0297.2007.02000.x
  36. Juhn Chinhui, Murphy Kevin M., Topel Robert H., Yellen Janet L., Baily Martin Neil, Why has the Natural Rate of Unemployment Increased over Time?, 10.2307/2534590
  37. Kramarz Francis, Philippon Thomas, The impact of differential payroll tax subsidies on minimum wage employment, 10.1016/s0047-2727(00)00137-7
  38. Layard, R., Nickell, S., & Jackman, R. (1991). Unemployment: Macroeconomic performance and the labour market. Oxford: Oxford University Press.
  39. Lehmann Etienne, Parmentier Alexis, Van Der Linden Bruno, Optimal income taxation with endogenous participation and search unemployment, 10.1016/j.jpubeco.2011.05.012
  40. Lockwood Ben, Manning Alan, Wage setting and the tax system theory and evidence for the United Kingdom, 10.1016/0047-2727(93)90102-y
  41. Malcomson James M., Sartor Nicola, Tax push inflation in a unionized labour market, 10.1016/s0014-2921(87)80027-2
  42. Manning Alan, Wage Bargaining and the Phillips Curve: The Identification and Specification of Aggregate Wage Equations, 10.2307/2234339
  43. Meghir, C., & Phillips, D. (2010). Labour supply and taxes. In J. Mirrlees, S. Adam, T. Besley, R. Blundell, S. Bond, R. Chote, M. Gammie, P. Johnson, G. Myles, & J. Poterba (Eds.), Mirrlees review: Reforming the tax system for the 21st century. Volume design of tax design, chapter 3 (Vol. Dimensions, pp. 202–274). Oxford: Oxford University Press.
  44. Mirrlees J. A., An Exploration in the Theory of Optimum Income Taxation, 10.2307/2296779
  45. Moen Espen R., Competitive Search Equilibrium, 10.1086/262077
  46. Mortensen Dale T., Pissarides Christopher A., Chapter 39 New developments in models of search in the labor market, Handbook of Labor Economics (1999) ISBN:9780444501882 p.2567-2627, 10.1016/s1573-4463(99)30025-0
  47. Musgrave R. A., Thin Tun, Income Tax Progression, 1929-48, 10.1086/256742
  48. Nichols, A., & Rothstein, J. (2015). The earned income tax credit (eitc). Working paper 21211, National Bureau of Economic Research.
  49. Nickell, S., & Layard, R. (1999). Labor market institutions and economic performance. In O. C. Ashenfelter & D. Card (Eds.), Handbook of Labor Economics (Vol. 3, pp. 3029–3084). Amsterdam: Elsevier. Part C, Chapter 46.
  50. Nickell Stephen, Nunziata Luca, Ochel Wolfgang, Unemployment in the OECD Since the 1960s. What Do We Know?*, 10.1111/j.1468-0297.2004.00958.x
  51. Nunziata Luca, Institutions and Wage Determination: a Multi-country Approach*, 10.1111/j.1468-0084.2005.00127.x
  52. Parmentier, A. (2006). The effects of the marginal tax rate in a matching model with endogenous labor supply. Discussion papers, Université catholique de Louvain, Département des Sciences Economiques.
  53. Persson, T., & Tabellini, G. (2002). Political economics: Explaining economic policy. Cambridge: MIT press.
  54. Pissarides Christopher A., Taxes, Subsidies and Equilibrium Unemployment, 10.2307/2297474
  55. Pissarides Christopher A., The impact of employment tax cuts on unemployment and wages; The role of unemployment benefits and tax structure, 10.1016/s0014-2921(97)00090-1
  56. Pissarides, C. A. (2000). Equilibrium unemployment theory (2nd ed.). Cambridge: MIT Press.
  57. Prescott, E. C. (2004). Why do Americans work so much more than Europeans? Federal Reserve Bank of Minneapolis Quarterly Review, 28(1), 2–13.
  58. Roed Knut, Strom Steinar, Progressive Taxes and the Labour Market: Is the Trade-off Between Equality and Efficiency Inevitable?, 10.1111/1467-6419.00160
  59. Rogerson Richard, Understanding differences in hours worked, 10.1016/
  60. Rogerson Richard, Structural Transformation and the Deterioration of European Labor Market Outcomes, 10.1086/588029
  61. Rogerson Richard, Wallenius Johanna, Micro and macro elasticities in a life cycle model with taxes, 10.1016/j.jet.2008.05.011
  62. Romer Christina D, Romer David H, The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks, 10.1257/aer.100.3.763
  63. Sapienza Paola, Toldra-Simats Anna, Zingales Luigi, Understanding Trust, 10.1111/ecoj.12036
  64. Sørensen, P. B. (1997). Public finance solutions to the european unemployment problem? Economic Policy, 25, 223–264.
  65. Sørensen Peter Birch, Optimal tax progressivity in imperfect labour markets, 10.1016/s0927-5371(99)00021-4
  66. Stock James H., Yogo Motohiro, Testing for Weak Instruments in Linear IV Regression, Identification and Inference for Econometric Models ISBN:9780511614491 p.80-108, 10.1017/cbo9780511614491.006
  67. Stole Lars A., Zwiebel Jeffrey, Intra-Firm Bargaining under Non-Binding Contracts, 10.2307/2297888
  68. Summers L., Gruber J., Vergara R., Taxation and the Structure of Labor Markets: The Case of Corporatism, 10.2307/2118336