Labor Tax Progressivity, Wage Determination, and the Relative Wage Effect

Giorgio Brunello and Daniela Sonedda

No 721, CESifo Working Paper Series from CESifo

Abstract: We model a two sector economy with unionized labor markets and competitive product markets, where workers and unions care about their relative wages, and show that the presence of a relative wage concern could help generation a positive relationship between tax progressivity and wage pressure.

Keywords: progressive taxation; relative wage effect (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_721

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