Charity and redistributive taxation in a unionized economy

B-Tier
Journal: Labour Economics
Year: 2008
Volume: 15
Issue: 5
Pages: 831-843

Score contribution per author:

2.018 = (α=2.02 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

European economies are characterized by unionized labor markets and governmental redistribution of income. This paper studies a model where those two features are combined with the possibility for individuals to make charitable contributions to the poor. The model exhibits equilibrium unemployment that increases with the degree of altruism. It is shown that a more progressive income tax can both reduce the unemployment rate and improve the public budget. These results are driven by charity increasing wage pressure and the altruistic rich failing to internalize the effect of their donations on the wage setting behavior of the unions.

Technical Details

RePEc Handle
repec:eee:labeco:v:15:y:2008:i:5:p:831-843
Journal Field
Labor
Author Count
1
Added to Database
2026-01-25