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Taxes and Benefits in a Non-linear Wage Equation

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Abstract

This paper estimates a structural non-linear wage bargaining model for the Netherlands. The estimation results show a significant positive long-term impact of the average tax rate on wages. The marginal tax rate exerts a small negative impact on wages. The impact of benefits rises with the unemployment rate.

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Authors and Affiliations

  1. Neterlands Bureau of Economic Policy Analysis CPB, P.O.Box 80510, The Hague, The Netherlands

    J.J. Graafland & F.H. Huizinga

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  1. J.J. Graafland
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  2. F.H. Huizinga
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Graafland, J., Huizinga, F. Taxes and Benefits in a Non-linear Wage Equation. De Economist 147, 39–54 (1999). https://doi.org/10.1023/A:1003542108657

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  • DOI: https://doi.org/10.1023/A:1003542108657

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