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Distortive Wage Tax and Commuting Subsidies


Matthias Wrede


University of Erlangen-Nuremberg - Institute of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
February 2006


Abstract:     
Within an urban economics framework, this paper studies the implications of a wage tax which distorts workplace choices on account of commuting costs. Commuting subsidies increase welfare if and only if they shift labor supply from less to more productive business districts.

Number of Pages in PDF File: 9

Keywords: Wage tax, commuting subsidies

JEL Classification: R13, H21

working papers series


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Date posted: February 21, 2006  

Suggested Citation

Wrede, Matthias, Distortive Wage Tax and Commuting Subsidies (February 2006). Available at SSRN: http://ssrn.com/abstract=884181 or http://dx.doi.org/10.2139/ssrn.884181

Contact Information

Matthias Wrede (Contact Author)
University of Erlangen-Nuremberg - Institute of Economics ( email )
Germany
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
Feedback to SSRN (Beta)


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