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ENVIRONMENTAL POLICY AND LABOUR MARKET IMPERFECTION
Author(s) -
Kuo KuoHsing,
Lee ChengTe,
Wu ShangFen
Publication year - 2018
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12122
Subject(s) - economics , wage , labour economics , bargaining power , informal sector , government (linguistics) , market power , environmental policy , perfect competition , general equilibrium theory , market economy , microeconomics , linguistics , philosophy , natural resource economics , monopoly
This paper will set up a general equilibrium model with a distorted labour market to explore the effects of an environmental tax and union bargaining power on formal employment and the informal competitive wage. We find that when the government raises the environmental tax, both formal employment and informal competitive wage would fall. In addition, we confirm that a policy of labour market reform would increase both formal employment and the informal competitive wage.