Dynamic curvature of the tax wedge

Thomas Cool
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Thomas Cool: independent consultant
Authors registered in the RePEc Author Service: Thomas Colignatus ()

Public Economics from EconWPA

Abstract: The tax wedge makes for a higher gross minimum wage, and a wedge comes about more likely when tax exemption is adjusted for inflation only. Due to curvature, the wedge comes closer to its limit value for already low levels of productivity growth. Thus, the negative effects of the wedge occur primarily at the onset of economic growth. They are less noticeable when stagnation has altready set in.

JEL-codes: H2 (search for similar items in EconPapers)
Date: 1996-04-24
Note: 7 pages Word

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