Details
| Originalsprache | Englisch |
|---|---|
| Seiten (von - bis) | 105-124 |
| Seitenumfang | 20 |
| Fachzeitschrift | Journal of Economics/ Zeitschrift fur Nationalokonomie |
| Jahrgang | 94 |
| Ausgabenummer | 2 |
| Frühes Online-Datum | 8 März 2008 |
| Publikationsstatus | Veröffentlicht - Juli 2008 |
Abstract
Government-run entities are often more labor-intensive than private companies, even with identical production technologies. This need not imply slack in the public sector, but may reflect a wage tax advantage, stemming from the fact that government entities (partly) pay their taxes to themselves. A tax-induced cost advantage of public production precludes production efficiency and reduces welfare when labor supply is inelastic. With an elastic labor supply, a wage tax advantage of the public sector may improve welfare if it allows for a higher net wage.
ASJC Scopus Sachgebiete
- Betriebswirtschaft, Management und Rechnungswesen (insg.)
- Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.)
- Volkswirtschaftslehre und Ökonometrie
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in: Journal of Economics/ Zeitschrift fur Nationalokonomie, Jahrgang 94, Nr. 2, 07.2008, S. 105-124.
Publikation: Beitrag in Fachzeitschrift › Artikel › Forschung › Peer-Review
}
TY - JOUR
T1 - Why is the public sector more labor-intensive?
T2 - A distortionary tax argument
AU - Poutvaara, Panu
AU - Wagener, Andreas
PY - 2008/7
Y1 - 2008/7
N2 - Government-run entities are often more labor-intensive than private companies, even with identical production technologies. This need not imply slack in the public sector, but may reflect a wage tax advantage, stemming from the fact that government entities (partly) pay their taxes to themselves. A tax-induced cost advantage of public production precludes production efficiency and reduces welfare when labor supply is inelastic. With an elastic labor supply, a wage tax advantage of the public sector may improve welfare if it allows for a higher net wage.
AB - Government-run entities are often more labor-intensive than private companies, even with identical production technologies. This need not imply slack in the public sector, but may reflect a wage tax advantage, stemming from the fact that government entities (partly) pay their taxes to themselves. A tax-induced cost advantage of public production precludes production efficiency and reduces welfare when labor supply is inelastic. With an elastic labor supply, a wage tax advantage of the public sector may improve welfare if it allows for a higher net wage.
KW - Labor intensity
KW - Public sector
KW - Taxation
UR - http://www.scopus.com/inward/record.url?scp=47249084298&partnerID=8YFLogxK
U2 - 10.1007/s00712-008-0002-6
DO - 10.1007/s00712-008-0002-6
M3 - Article
AN - SCOPUS:47249084298
VL - 94
SP - 105
EP - 124
JO - Journal of Economics/ Zeitschrift fur Nationalokonomie
JF - Journal of Economics/ Zeitschrift fur Nationalokonomie
SN - 0931-8658
IS - 2
ER -