Optimal wage setting for an export oriented firm under labor taxes and labor mobility
In this paper it is developed a theoretical model to study the incentives that a labor tax might induce in terms of the optimal wage setting for an export oriented firm. In particular, we analyze the interaction of a labor tax that tends to reduce the wage due the firm is induced to shift backwards...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | Spanish |
| Published: |
Universidad Autónoma de Ciudad Juárez
2005-01-01
|
| Series: | Nóesis |
| Subjects: | |
| Online Access: | http://www.redalyc.org/articulo.oa?id=85902710 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1825208072937668608 |
|---|---|
| author | Raúl Ponce Rodríguez |
| author_facet | Raúl Ponce Rodríguez |
| author_sort | Raúl Ponce Rodríguez |
| collection | DOAJ |
| description | In this paper it is developed a theoretical model to study the incentives that a labor tax might induce in terms of the optimal wage setting for an export oriented firm. In particular, we analyze the interaction of a labor tax that tends to reduce the wage due the firm is induced to shift backwards the tax burden to its employees minimizing the possible increase
in the payroll costs and a fall of profits. However a lower wage might not be an optimal response to the establishment of a labor tax because it increases the labor turnover and as a result the firm faces both: an outputs opportunity cost and a labors turnover cost. The firm thus optimally decides to respond to the qualification and labor taxes by increasing the after tax wage. |
| format | Article |
| id | doaj-art-bda1b0efe5f04d2bb4db9229e7530eeb |
| institution | Kabale University |
| issn | 0188-9834 2395-8669 |
| language | Spanish |
| publishDate | 2005-01-01 |
| publisher | Universidad Autónoma de Ciudad Juárez |
| record_format | Article |
| series | Nóesis |
| spelling | doaj-art-bda1b0efe5f04d2bb4db9229e7530eeb2025-02-06T23:15:24ZspaUniversidad Autónoma de Ciudad JuárezNóesis0188-98342395-86692005-01-011527251271Optimal wage setting for an export oriented firm under labor taxes and labor mobilityRaúl Ponce RodríguezIn this paper it is developed a theoretical model to study the incentives that a labor tax might induce in terms of the optimal wage setting for an export oriented firm. In particular, we analyze the interaction of a labor tax that tends to reduce the wage due the firm is induced to shift backwards the tax burden to its employees minimizing the possible increase in the payroll costs and a fall of profits. However a lower wage might not be an optimal response to the establishment of a labor tax because it increases the labor turnover and as a result the firm faces both: an outputs opportunity cost and a labors turnover cost. The firm thus optimally decides to respond to the qualification and labor taxes by increasing the after tax wage.http://www.redalyc.org/articulo.oa?id=85902710labor marketorganizational behaviorpayroll taxes |
| spellingShingle | Raúl Ponce Rodríguez Optimal wage setting for an export oriented firm under labor taxes and labor mobility Nóesis labor market organizational behavior payroll taxes |
| title | Optimal wage setting for an export oriented firm under labor taxes and labor mobility |
| title_full | Optimal wage setting for an export oriented firm under labor taxes and labor mobility |
| title_fullStr | Optimal wage setting for an export oriented firm under labor taxes and labor mobility |
| title_full_unstemmed | Optimal wage setting for an export oriented firm under labor taxes and labor mobility |
| title_short | Optimal wage setting for an export oriented firm under labor taxes and labor mobility |
| title_sort | optimal wage setting for an export oriented firm under labor taxes and labor mobility |
| topic | labor market organizational behavior payroll taxes |
| url | http://www.redalyc.org/articulo.oa?id=85902710 |
| work_keys_str_mv | AT raulponcerodriguez optimalwagesettingforanexportorientedfirmunderlabortaxesandlabormobility |