Lower Tax Progression, Longer Hours and Higher Wages
研究降低个人所得税累进性对工作时间、工资和失业的影响，发现改革会同时提高工资和失业率，且不同谈判模式下的效果有差异。
The impact of tax reforms that decrease income tax progression is analysed in an equilibrium search model with wage bargaining and endogenous individual working hours. Working hours are either bargained together with the hourly wage (case 1) or determined solely by workers after bargaining over the wage (case 2). In both cases reducing tax progression increases working hours of employed and, more interestingly, unambiguously increases wages and unemployment. Wages and unemployment rise more and working hours and production less in case 1 compared to case 2, probably making case 2 countries best suited for such tax reforms.