Journal article
Taxation of labour income and the skilled–unskilled wage inequality
Economic Modelling, Vol.47, pp.18-22
2015
Abstract
Using a simple general equilibrium model of a small open economy that produces (i) an industrial good, (ii) an agricultural good, and (iii) a sector specific intermediate good, under competitive conditions, this paper examines the impact of a tax on labour on skilled-unskilled wage inequality. It is shown that, when all goods are traded, a tax on labour in the industrial sector increases skilled-unskilled wage inequality. On the other hand, a tax on labour in the intermediate good sector has the opposite effect. However, when the intermediate good is non-traded, the impact of a tax on labour in either of the two sectors is negative. Furthermore, irrespective of whether or not the intermediate good is traded, a tax on labour in the agricultural sector increases skilled-skilled wage inequality.
Details
- Title
- Taxation of labour income and the skilled–unskilled wage inequality
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast - Faculty of Arts and BusinessSizhong Sun (Author) - James Cook University
- Publication details
- Economic Modelling, Vol.47, pp.18-22
- Publisher
- Elsevier BV
- Date published
- 2015
- DOI
- 10.1016/j.econmod.2014.12.037
- ISSN
- 0264-9993
- Copyright note
- Copyright © 2015. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99449403102621
- Output Type
- Journal article
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