Inter-jurisdictional competition for firms

• 成果类型: Article; Proceedings Paper
• 署名作者: Boadway, R; Cuff, K; Marceau, N
• 署名单位: Queens University - Canada; McMaster University; University of Quebec; University of Quebec Montreal
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/1468-2354.t01-1-00034
• 发表日期: 2002
• 页码: 761-782
• 关键词: minimum-wage legislation; Tax coordination; mobility

摘要

Regions inhabited with an immobile population of disabled and able individuals compete to attract mobile firms that provide jobs. The redistributive goal of regional governments is to support the disabled, who cannot work. Able individuals may work, be involuntary unemployed because of frictions in the labor market, or choose to be voluntary unemployed. Labor force participation decisions depend on regional redistributive policies. Both the size of workforce and tax on firms affect profits and therefore, firms' location decisions. Allowing regions to engage in tax competition may be efficient. If regions cannot tax firms, they compete by implementing inefficient redistributive policies.