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Wages are sticky because people generally don't like job hopping. Over time they absolutely lead to higher wages as firms compete for employees. As far as corp
by colinmhayes 5y ago
Wages are sticky because people generally don't like job hopping. Over time they absolutely lead to higher wages as firms compete for employees.
As far as corporate tax incidence, the literature is pretty clear that they reduce wages. They reduce return on capital too, some estimate that a $1 corporate tax costs capital 60 cents and labor 40 cents from what I've read. Some estimates are 50/50 though. https://www.aeaweb.org/articles?id=10.1257/aer.20130570 https://www.aeaweb.org/articles?id=10.1257/aer.20130570
https://www.sciencedirect.com/science/article/abs/pii/S0014292112000451 https://www.sciencedirect.com/science/article/abs/pii/S00142...