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L’effet des syndicats sur la concurrence fiscale internationale .
Author(s) -
Exbrayat Nelly,
Gaigné Carl,
Riou Stéphane
Publication year - 2012
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2012.01746.x
Subject(s) - economics , labour economics , tax competition , capital (architecture) , differential (mechanical device) , welfare , tax reform , ad valorem tax , international economics , market economy , archaeology , engineering , history , aerospace engineering
We analyze the impact of labour market rigidities on tax competition between two imperfectly integrated countries. Following a shift from a competitive to a unionized labour market in both countries, the capital tax can be adjusted upward in the country with the less rigid labour market, whereas the capital tax is always adjusted downward in the other country. Moreover, by reducing the labour cost differential between countries, trade liberalization gives rise to tax and welfare convergences. Finally, when a country adopts a flexible labour market, the unionized country may attract the majority of capital.