NDLI: Optimal Tax Progressivity in Unionised Labour Markets: Simulation Results for Germany

Content Provider	Springer Nature Link
Author	Boeters, Stefan
Copyright Year	2012
Abstract	Changing the income tax progressivity in labour markets with collective wage bargaining generates a trade-off. On the one hand, higher progressivity distorts individual labour supply decisions at the hours-of-work margin, on the other hand, it reduces unemployment by exerting downward pressure on wages. This trade-off is quantitatively assessed using a numerical model for Germany. The model combines a microsimulation module, which captures the labour-supply decisions of approximately 4,600 individual households, and a macro (computable general equilibrium) module, which features collective wage bargaining and involuntary unemployment. In the simulations carried out using this model, the optimal degree of tax progressivity turns out to be higher than the one in the actual German tax schedule. The optimum is located at marginal tax rates that are 6 percentage points higher than the actual rates (combined with a transfer that balances the public budget). The welfare gain from such a reform is modest, however. It amounts to no more than two euros per person per month.
Starting Page	447
Ending Page	474
Page Count	28
File Format	PDF
ISSN	09277099
Journal	Computational Economics
Volume Number	41
Issue Number	4
e-ISSN	15729974
Language	English
Publisher	Springer US
Publisher Date	2012-06-12
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Labour taxation Tax progressivity Optimal taxation Collective wage bargaining Unemployment Microsimulation Computable general equilibrium model Economic Theory
Content Type	Text
Resource Type	Article
Subject	Economics, Econometrics and Finance Computer Science Applications

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Optimal tax progressivity in unionised labour markets: Simulation results for Germany

Optimal tax progressivity in unionised labour markets: what are the driving forces?

Taxation and unemployment: an applied general equilibrium approach for Germany

Heterogeneous Labour Markets in a Microsimulation–AGE Model: Application to Welfare Reform in Germany

Beyond the labour income tax wedge: the unemployment-reducing effect of tax progressivity

Taxation and unemployment : an applied general equilibrium approach

The labour market in CGE models

Discrete Working Time Choice in an Applied General Equilibrium Model

Heterogeneous labour markets in a microsimulation-AGE model: Application to welfare reform in Germany

Optimal Tax Progressivity in Unionised Labour Markets: Simulation Results for Germany

Similar Documents

Optimal tax progressivity in unionised labour markets: Simulation results for Germany

Optimal tax progressivity in unionised labour markets: what are the driving forces?

Taxation and unemployment: an applied general equilibrium approach for Germany

Heterogeneous Labour Markets in a Microsimulation–AGE Model: Application to Welfare Reform in Germany

Beyond the labour income tax wedge: the unemployment-reducing effect of tax progressivity

Taxation and unemployment : an applied general equilibrium approach

The labour market in CGE models

Discrete Working Time Choice in an Applied General Equilibrium Model

Heterogeneous labour markets in a microsimulation-AGE model: Application to welfare reform in Germany

Optimal Tax Progressivity in Unionised Labour Markets: Simulation Results for Germany