The Unemployment and Wage Effects of Shifting to an Indirect Tax in an Efficiency Wage Model |
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| Authors: | JUIN-JEN CHANG CHUNG-CHENG LIN CHING-CHONG LAI |
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| Affiliation: | Department of Economics, Fu-/en Catholic University;Institute of Economics, Academia Sinica, Taiwan;Sun Yat-Sen Institute for Social Sciences and Philosophy, Academia Sinica. Taiwan and Department of Economics, Feng Chia University, Taiwan |
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| Abstract: | This paper examines the unemployment and wage effects of the tax shift from an income tax to a consumption tax in a shirking-type efficiency wage model. It is found that the results of the ex-ante individual income-neutral and aggregate revenue-neutral proposals in this paper's efficiency wage model confirm those in the monopoly trade union model analyzed by Sampson (1986), Creedy and McDonald (1990, 1992), and Pemberton (1992). The ex-post tax-shifting schemes are also discussed. |
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