Corporate Taxes and Union Wages in the United States
Alison Felix and
James Hines ()
No 15263, NBER Working Papers from National Bureau of Economic Research, Inc
This paper evaluates the effect of U.S. state corporate income taxes on union wages. American workers who belong to unions are paid more than their non-union counterparts, and this difference is greater in low-tax locations, reflecting that unions and employers share tax savings associated with low tax rates. In 2000 the difference between average union and non-union hourly wages was $1.88 greater in states with corporate tax rates below four percent than in states with tax rates of nine percent and above. Controlling for observable worker characteristics, a one percent lower state tax rate is associated with a 0.36 percent higher union wage premium, suggesting that workers in a fully unionized firm capture roughly 54 percent of the benefits of low tax rates.
JEL-codes: H22 H25 J31 J51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc, nep-bec, nep-lab, nep-pbe and nep-pub
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Working Paper: Corporate taxes and union wages in the United States (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:15263
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