The effects of capital income taxation on wage formation

Torbjörn Dalin and Jesper Stage

Economics Letters, 2011, vol. 113, issue 2, 186-188

Abstract: In this paper, the effects of capital income taxation on wage formation are studied using OECD data. The results indicate that a rise in the tax rate on capital income will reduce real wages and increase employment.

Keywords: Capital taxation; Wage formation; Labour supply (search for similar items in EconPapers)
JEL-codes: H21 H23 J31 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:113:y:2011:i:2:p:186-188

DOI: 10.1016/j.econlet.2011.07.001

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