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Progressive taxation and wage setting: Some evidence for Denmark

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UNSPECIFIED (2000) Progressive taxation and wage setting: Some evidence for Denmark. SCANDINAVIAN JOURNAL OF ECONOMICS, 102 (4). pp. 707-723.

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Abstract

The proposition that a progressive tax system contributes to wage moderation is studied using Danish earnings data disaggregated by occupation, gender and earnings level. Our main conclusions are that income-tax progression affects wage setting, but whether it moderates or exaggerates wage pressure is income dependent, An increase in progressivity reduces the pre-tax earnings of middle-income workers (manual mate workers and moderate income carriers among both male and female non-manual workers). The reverse is found for high-income earners (non-manual male workers), in that an increase in progressivity tends to raise pre-tax earnings. Finally, there is no significant effect of tax progressivity on the wages of low-income earners.

Item Type: Journal Article
Subjects: H Social Sciences > HC Economic History and Conditions
Journal or Publication Title: SCANDINAVIAN JOURNAL OF ECONOMICS
Publisher: BLACKWELL PUBL LTD
ISSN: 0347-0520
Official Date: 2000
Dates:
DateEvent
2000UNSPECIFIED
Volume: 102
Number: 4
Number of Pages: 17
Page Range: pp. 707-723
Publication Status: Published

Data sourced from Thomson Reuters' Web of Knowledge

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