Efficiency wages, employment, and the marginal income-tax rate: A note

Fuest, Clemens und Huber, Bernd (1998): Efficiency wages, employment, and the marginal income-tax rate: A note. In: Journal of Economics / Zeitschrift für Nationalökonomie, Bd. 68, Nr. 1: S. 79-84

Abstract

In the framework of an efficiency-wage model, Hoel [Journal of Economics (1990) 51: 89-99] argues that a reduction in the marginal income-tax rate reduces employment. The present note shows that this result depends on how the tax reform is assumed to change the burden per worker. If the tax payment per worker is held constant, it cannot be ruled out that a lower marginal tax rate leads to an increase in employment.

• Dokumententyp: Zeitschriftenartikel
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Lehrstühle > Lehrstuhl für Finanzwissenschaft
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• Sprache: Englisch