Taxes and Unemployment

Taxes and Unemployment

Author: Laszlo Goerke

Publisher: Springer Science & Business Media

Published: 2012-12-06

Total Pages: 308

ISBN-13: 1461507871

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This chapter has set out in detail the models which are employed below in order to analyse the labour market effects of changes in tax rates and in alterations in the tax structure. The fundamental mechanisms underlying the different approaches have been pointed out. Moreover, vital assumptions have been emphasised. By delineating the models which are used for the subsequent analyses, implicitly statements have also been made about topics or aspects which this study does not cover. For example, all workers and firms are identical ex ante. However, ex-post differences are allowed for, inter alia, if unemploy ment occurs or if some firms have to close down. These restrictions indicate areas of future research insofar as that the findings for homogeneous workers or firms yield an unambiguous proposal for changes in tax rates or the tax structure in order to promote employment. This is because it would be desir able for tax policy to know whether the predicted effects also hold in a world with ex-ante heterogeneity. Furthermore, the product market has not played a role. Therefore, repercussions from labour markets outcomes on product demand - and vice versa - are absent. 55 Moreover, neither the process of capital accumulation, be it physical or human capital, nor substitution pos sibilities between labour and capital in the firms' production function are taken into account. Finally, international competition is not modelled.


Centralized Bargaining, Efficiency Wages, and Flexibility

Centralized Bargaining, Efficiency Wages, and Flexibility

Author: Mr.Ramana Ramaswamy

Publisher: International Monetary Fund

Published: 1993-03

Total Pages: 38

ISBN-13:

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The main focus of the “wage bargaining” literature has been on the factors promoting real wage flexibility at the macro level. This paper, in contrast, examines the microeconomic issues of wage bargaining. More specifically, this paper appraises the following questions: (a) what are the conditions under which a firm prefers decentralized to centralized bargaining?, (b) what are the characteristic features of firms which prefer decentralized to centralized bargaining?, and (c) has the proportion of firms which prefer decentralized bargaining increased over time? These questions are examined in an efficiency wage model with insider-outsider features. This paper provides useful theoretical insights for understanding the issues involved in shifting from centralized to decentralized wage bargaining.


Collective Bargaining and Wage Formation

Collective Bargaining and Wage Formation

Author: Hannu Piekkola

Publisher: Springer Science & Business Media

Published: 2005-12-06

Total Pages: 190

ISBN-13: 3790815985

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Hannu Piekkola and Kenneth Snellman ETLA, The Research Institute of the Finnish Economy, Helsinki, Finland The Labour Institute for Economic Research, Helsinki, Finland 1 The Basic Issues Wages have traditionally been agreed on collectively in Europe. The articles in this volume examine the current state of collective bargaining as well as the ch- lenges it is currently facing. The issues examined in these papers have a wide applicability to problems on the European labour markets. Torben M. Andersen and Steinar Holden review challenges from globalisation and inter-industry trade and the adaptation to a low-inflation environment. The other contributions are part of the project investigating collective bargaining in Finland, carried out by ETLA (the Research Institute of the Finnish Economy) and the Labour Institute for E- nomic Research. Some of them use results from a Finnish survey carried out by the two institutes ETLA and the Labour Institute on the views of employers and employees about labour relations and the labour market negotiation system. Bargaining systems are complex and their future development depends on their historical evolution, recent and past experiences, and the current situation in the labour market, as well as changes in the international environment. By examining the past functioning of the bargaining system one can observe how different e- ments in it have interacted with various factors in the environment of the system.


Technological Change, Collective Bargaining, and Industrial Efficiency

Technological Change, Collective Bargaining, and Industrial Efficiency

Author: Paul Willman

Publisher: Oxford University Press, USA

Published: 1986

Total Pages: 312

ISBN-13:

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Assessing the reaction of trade unions to innovation, this revisionist study asserts that unions do not, in fact, obstruct change as often as is commonly assumed. In a detailed analysis of industrial innovations and labor relations, Willman examines three major industries that have experienced abnormal problems in both the U.S. and Great Britain: the port, newspaper, and automotive industries. The explanation for this pattern isolates the close relationship--in the U. S. and Great Britain--between technological and organized change.