EconPapers    
Economics at your fingertips  
 

The effects of labour unions on international capital tax competition

Nelly Exbrayat, Carl Gaigne and Stephane Riou ()

Canadian Journal of Economics, 2012, vol. 45, issue 4, 1480-1503

Abstract: We analyze the impact of labour market rigidities on tax competition between two imperfectly integrated countries. Following a shift from a competitive to a unionized labour market in both countries, the capital tax can be adjusted upward in the country with the less rigid labour market, whereas the capital tax is always adjusted downward in the other country. Moreover, by reducing the labour cost differential between countries, trade liberalization gives rise to tax and welfare convergences. Finally, when a country adopts a flexible labour market, the unionized country may attract the majority of capital.

JEL-codes: F12 F16 H25 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
http://economics.ca/cgi/xms?jab=v45n4/CJEv45n4p1480.pdf Full text (application/pdf)
Available to subscribers only. Alternative access through JSTOR and Ingenta.

Related works:
Working Paper: The effects of labour unions on international capital tax competition (2012)
Working Paper: The effects of labor unions on international capital tax competition (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:45:y:2012:i:4:p:1480-1503

Ordering information: This journal article can be ordered from
https://economics.ca/en/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Katherine Cuff

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

 
Page updated 2019-08-11
Handle: RePEc:cje:issued:v:45:y:2012:i:4:p:1480-1503