The effect of taxes on labour in efficiency wage models: A comment

Authors
Carter, TJ
Citation
Tj. Carter, The effect of taxes on labour in efficiency wage models: A comment, J PUBLIC EC, 72(2), 1999, pp. 325-327
Citations number
3
Categorie Soggetti
Economics
Journal title
JOURNAL OF PUBLIC ECONOMICS
ISSN journal
00472727 → ACNP
Volume
72
Issue
2
Year of publication
1999
Pages
325 - 327
Database
ISI
SICI code
0047-2727(199905)72:2<325:TEOTOL>2.0.ZU;2-Y
Abstract
This comment shows that some of Pisauro's (Journal of Public Economics, 199 1, 46, 329-345) reported results hold only if the unemployment rate exceeds 50%. If it does not, specific labor taxes reduce wages. Also, output falls when employment rises, all else equal, and minimum wage laws raise output. (C) 1999 Elsevier Science S.A. All rights reserved.