Memorandum,
Oslo University, Department of Economics

Abstract: Increased tax progressivity raises the elasticity of labour demand with respect to consumer wages which implies that labour unions subtitute wages with employment. This paper investigates the effects to tax prograssivity on wages using Nerwegian establishment level panel data.

Keywords: WAGES; TAXATION; PANEL DATA

JEL-codes: C33; H24; J38; J51

35 pages, 1996

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