WAGE SETTING AND THE TAX-SYSTEM - THEORY AND EVIDENCE FOR THE UNITED-KINGDOM

• 成果类型: Article
• 署名作者: LOCKWOOD, B; MANNING, A
• 署名单位: University of London; London School Economics & Political Science
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(93)90102-Y
• 发表日期: 1993
• 页码: 1-29

摘要

This paper analyses the effects of a non-linear tax system on wage bargaining. The main conclusions are: an increase in the marginal income or payroll tax rate reduces the pre-tax wage; in the isoelastic case, an increase in the average tax rate increases the pre-tax wage by more than the tax increase, and a measure of the progressivity of the tax system (residual income progression) is a sufficient measure of the effect of the tax system on wage pressure. Empirical evidence is presented to support these propositions, and the predictions of the model regarding the effect of recent changes to the U.K. tax system on the distribution of earnings discussed.