Labour tax policies and strategic offshoring under unionised oligopoly

Silvia Rocha-Akis

No 99, Department of Economics Working Paper Series from WU Vienna University of Economics and Business

Abstract: In a model with a unionised immobile labour force we analyse how labour taxes and transfers towards unemployed workers are optimally chosen when a welfare maximising government faces oligopolistic and partly mobile firms. We consider two polar types of government: one whose objective consists of aximising the sum of domestic producer's and consumers' surplus and one that aims at maximising employed and unemployed workers' payoffs. We show that depending on the combination of foreign labour costs, the degree of domestic union bargaining power, and the sunk costs of relocation, the former type of government may choose to set taxes so as to induce an outward relocation of production. (author's abstract)

Keywords: outward FDI; import competition; wage bargaining; oligopoly; labour taxation; redistribution; political economy (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://epub.wu.ac.at/394/ original version (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (https://epub.wu.ac.at/394/ [308 PERMANENT REDIRECT]--> https://epub.wu.ac.at/id/eprint/394 [302 FOUND]--> https://research.wu.ac.at/en/publications/68b176a4-745e-4d33-a66b-fd855b34a6ba)

Related works:
Working Paper: Labour tax policies and strategic offshoring under unionised oligopoly (2006)
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:wiw:wus005:394

Access Statistics for this paper

More papers in Department of Economics Working Paper Series from WU Vienna University of Economics and Business Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by WU Library ().