Abstract

http://ssrn.com/abstract=1138640
 
 

References (26)



 
 

Citations (1)



 


 



Labour Tax Policies and Strategic Offshoring under Unionised Oligopoly


Silvia Rocha-Akis


Vienna University of Economics and Business Administration - Department of Economics

November 27, 2006

SFB International Tax Coordination Discussion Paper No. 17

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 maximising 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.

Number of Pages in PDF File: 31

Keywords: outward FDI, import competition, wage bargaining, oligopoly, labour taxation, redistribution, political economy

JEL Classification: H30, J30, J50, L13

working papers series





Download This Paper

Date posted: June 2, 2008  

Suggested Citation

Rocha-Akis, Silvia, Labour Tax Policies and Strategic Offshoring under Unionised Oligopoly (November 27, 2006). Available at SSRN: http://ssrn.com/abstract=1138640 or http://dx.doi.org/10.2139/ssrn.1138640

Contact Information

Silvia Rocha-Akis (Contact Author)
Vienna University of Economics and Business Administration - Department of Economics ( email )
Augasse 2-6
A-1090 Wien
Austria
Feedback to SSRN


Paper statistics
Abstract Views: 277
Downloads: 25
References:  26
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.281 seconds