Government versus Union. The Structure of Optimal Taxation in a Unionized Labor Market

Stefan Boeters and Kerstin Schneider ()

FinanzArchiv: Public Finance Analysis, 1999, vol. 56, issue 2, 174-

Abstract: This paper analyses optimal taxation with an imperfect labor market. Unemployment results from the market power of a monopoly union that determines the wage unilaterally. The government provides a public good and raises revenue by taxing rent, labor and capital income. Labor is immobile while capital is internationally traded. This paper focuses on the interaction between government and union. The Nash equilibrium is compared with the alternative of the Stackelberg leadership of the government. While the structure of the game has only a minor impact on the optimal choice of the tax on capital, the tax on labor depends critically on the structure of the interaction. Employment is lower when the government acts as a Stackelberg leader.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (16)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:mhr:finarc:urn:sici:0015-2218(199906)56:2_174:gvu_2.0.tx_2-k

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany

Access Statistics for this article

FinanzArchiv: Public Finance Analysis is currently edited by Alfons Weichenrieder, Ronnie Schöb and Jean-François Tremblay

More articles in FinanzArchiv: Public Finance Analysis from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().