Country characteristics and the incidence of capital income taxation on wages: an empirical assessment

Azémar, C. and Hubbard, R. G. (2015) Country characteristics and the incidence of capital income taxation on wages: an empirical assessment. Canadian Journal of Economics = Revue Canadienne d'Économique, 48(5), pp. 1762-1802. (doi:10.1111/caje.12179)

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Abstract

This paper examines the incidence of corporate income taxes on wages using data from the US Bureau of Labor Statistics for 13 OECD countries. Within a wage-bargaining framework, our econometric analysis shows that a substantial share of the corporate tax burden is shifted from capital to labour. However, the magnitude of this shift is influenced importantly by country characteristics affecting the process of wage determination, such as the degree of capital mobility, a country's relative influence over the world price of output and trade unions’ strength.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Azemar, Dr Celine
Authors: Azémar, C., and Hubbard, R. G.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Canadian Journal of Economics = Revue Canadienne d'Économique
Publisher:Wiley
ISSN:0008-4085
ISSN (Online):1540-5982
Published Online:21 July 2016
Copyright Holders:Copyright © 2016 Wiley
First Published:First published in Canadian Journal of Economics 48(5):1762-1802
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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