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...

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Autor principal: Raúl Ponce Rodríguez
Formato: article
Lenguaje:ES
Publicado: Universidad Autónoma de Ciudad Juárez 2005
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H
Acceso en línea:https://doaj.org/article/bda1b0efe5f04d2bb4db9229e7530eeb
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spelling oai:doaj.org-article:bda1b0efe5f04d2bb4db9229e7530eeb2021-11-11T15:37:53ZOptimal wage setting for an export oriented firm under labor taxes and labor mobility0188-98342395-8669https://doaj.org/article/bda1b0efe5f04d2bb4db9229e7530eeb2005-01-01T00:00:00Zhttp://www.redalyc.org/articulo.oa?id=85902710https://doaj.org/toc/0188-9834https://doaj.org/toc/2395-8669In 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.Raúl Ponce RodríguezUniversidad Autónoma de Ciudad Juárezarticlelabor marketorganizational behaviorpayroll taxesSocial SciencesHSocial sciences (General)H1-99ESNóesis, Vol 15, Iss 27, Pp 251-271 (2005)
institution DOAJ
collection DOAJ
language ES
topic labor market
organizational behavior
payroll taxes
Social Sciences
H
Social sciences (General)
H1-99
spellingShingle labor market
organizational behavior
payroll taxes
Social Sciences
H
Social sciences (General)
H1-99
Raúl Ponce Rodríguez
Optimal wage setting for an export oriented firm under labor taxes and labor mobility
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
author Raúl Ponce Rodríguez
author_facet Raúl Ponce Rodríguez
author_sort Raúl Ponce Rodríguez
title 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_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_sort optimal wage setting for an export oriented firm under labor taxes and labor mobility
publisher Universidad Autónoma de Ciudad Juárez
publishDate 2005
url https://doaj.org/article/bda1b0efe5f04d2bb4db9229e7530eeb
work_keys_str_mv AT raulponcerodriguez optimalwagesettingforanexportorientedfirmunderlabortaxesandlabormobility
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