Access

You are not currently logged in.

Access JSTOR through your library or other institution:

login

Log in through your institution.

Journal Article

Tax Competition in Imperfect Labor Markets

Mathias Hungerbühler and Tanguy van Ypersele
Annals of Economics and Statistics
No. 113/114, SPECIAL ISSUE ON THE ECONOMICS OF TAXATION (June 2014), pp. 99-120
Published by: GENES on behalf of ADRES
DOI: 10.15609/annaeconstat2009.113-114.99
Stable URL: http://www.jstor.org/stable/10.15609/annaeconstat2009.113-114.99
Page Count: 22
Were these topics helpful?
See somethings inaccurate? Let us know!

Select the topics that are inaccurate.

Cancel
  • More info
  • Add to My Lists
  • Cite this Item
Tax Competition in Imperfect Labor Markets
Preview not available

Abstract

We introduce imperfect labor markets into the tax competition framework. Countries set tax rates on profit and income. Labor is immobile across countries, while capital is mobile. We show the importance of asymmetries in labor market institutions for the optimal tax policy. While most of the labor market variables play no role for the tax rates in autarchic countries, they become important when tax competition is introduced. Especially, we find that a country with “better” labor market institutions taxes capital at a higher rate and income at a lower rate compared to a country with “bad” labor markets. JEL: H87, J64. / KEY WORDS: Tax Competition, Unemployment, Search and Matching.

Page Thumbnails