Wage Taxation in the Presence of Unionized Labour and Internationally Mobile Firms

  • Silvia Rocha-Akis (Redner*in)

Aktivität: VortragWissenschaftlicher Vortrag (Science-to-Science)


In a model with a unionised and immobile labour force we analyse labour tax-and-transfer policies when the government faces oligopolistic firms, part of which are internationally mobile. We show that a government, that seeks to maximise the domestic producer and consumer surplus may prefer a high tax- transfer regime consistent with offshoring, to an equilibrium with low taxes and no offshoring. Broadly speaking, by increasing labour taxes, the government discourages tough wage claims from the labour union, thereby contributing to an increase in overall output and profits, albeit at the cost of a decrease in domestic employment.
Zeitraum21 Mai 200824 Mai 2008
EreignistitelInternational Trade and Finance Association (ITFA)
VeranstaltungstypKeine Angaben