Labour tax policies and strategic offshoring under unionised oligopoly

Rocha-Akis, Silvia (2006) Labour tax policies and strategic offshoring under unionised oligopoly. Discussion Papers SFB International Tax Coordination, 17. SFB International Tax Coordination, WU Vienna University of Economics and Business, Vienna.


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In a model with a unionised immobile labour force we analyse how labour taxes and transfers towards unemployed workers are optimally cho- sen when a welfare maximising government faces oligopolistic and partly mobile firms. We consider two polar types of government: one whose objective consists of maximising the sum of domestic producer's and con- sumers' surplus and one that aims at maximising employed and unem- ployed workers' payoffs. We show that depending on the combination of foreign labour costs, the degree of domestic union bargaining power, and the sunk costs of relocation, the former type of government may choose to set taxes so as to induce an outward relocation of production. (author's abstract)

Item Type: Paper
Keywords: outward FDI / import competition / wage bargaining / oligopoly / labour taxation / redistribution / political economy
Classification Codes: RVK QL 611 ; JEL H30, J30, J50, L13
Divisions: Departments > Finance, Accounting and Statistics > Accounting and Auditing > Betriebswirtschaftliche Steuerlehre
Departments > Volkswirtschaft
Departments > Öffentliches Recht und Steuerrecht > Österr. und Internat. Steuerrecht
Depositing User: Repository Administrator
Date Deposited: 19 Dec 2006 13:11
Last Modified: 22 Oct 2019 00:41


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