Discussion Papers no. 242

Welfare effects of different regimes

Labour market rigidities and environmental tax reforms

The working of the labour market is important for the total welfare effects of tax reforms. This paper analyses, by using a computable general equilibrium model for the Norwegian economy, how different assumptions about labour mobility between industries and wage formation influence the non-environmental welfare effects of an environmental tax reform. Three different alternatives are analysed; competitive labour market, immobility and wage rigidity, and wage formation through union wage bargaining. The welfare effects differ substantially between the alternatives, depending especially on the total tax wedge on labour.

Om publikasjonen

Tittel

Labour market rigidities and environmental tax reforms. Welfare effects of different regimes

Ansvarlig

Brita Bye

Serie og -nummer

Discussion Papers no. 242

Utgiver

Statistics Norway, Research Department

Emne

Discussion Papers

Antall sider

35

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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