Logo Logo
Hilfe
Hilfe
Switch Language to English
Fuest, Clemens und Huber, Bernd (1998): Efficiency wages, employment, and the marginal income-tax rate: A note. In: Journal of Economics / Zeitschrift für Nationalökonomie, Vol. 68, Nr. 1: S. 79-84
Volltext auf 'Open Access LMU' nicht verfügbar.

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.