Abstract
We study a model of tax competition where both skilled and unskilled workers are mobile and wages of workers are endogenously determined. When the demand for skilled labor is sufficiently elastic, the equilibrium tax rate is decreasing in the degree of mobility of unskilled workers; otherwise the former is increasing in the latter.
Original language | English |
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Pages (from-to) | 347-353 |
Number of pages | 7 |
Journal | Economics Letters |
Volume | 83 |
Issue number | 3 |
DOIs | |
Publication status | Published - 2004 Jun |
Externally published | Yes |
Keywords
- Fiscal externality
- Mobility
- Redistribution
- Tax competition
ASJC Scopus subject areas
- Finance
- Economics and Econometrics