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2017•Bulletin of Economic ResearchRequires access

ENVIRONMENTAL POLICY AND LABOUR MARKET IMPERFECTION

Kuo‐Hsing Kuo, Cheng‐Te Lee, Shang‐Fen Wu

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Abstract

ABSTRACT This paper will set up a general equilibrium model with a distorted labour market to explore the effects of an environmental tax and union bargaining power on formal employment and the informal competitive wage. We find that when the government raises the environmental tax, both formal employment and informal competitive wage would fall. In addition, we confirm that a policy of labour market reform would increase both formal employment and the informal competitive wage.

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What this paper is about

ABSTRACT This paper will set up a general equilibrium model with a distorted labour market to explore the effects of an environmental tax and union bargaining power on formal employment and the informal competitive wage. We find that when the government raises the environmental tax, both formal employment and informal competitive wage would fall. In addition, we confirm that a policy of labour market reform would increase both formal employment and the informal competitive wage.

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OpenAlex reports 5 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

ABSTRACT This paper will set up a general equilibrium model with a distorted labour market to explore the effects of an environmental tax and union bargaining power on formal employment and the informal competitive wage. We find that when the government raises the environmental tax, both formal employment and informal competitive wage would fall. In addition, we confirm that a policy of labour market reform would increase both formal employment and the informal competitive wage.

Key concepts: Economics, Wage, Labour economics, Bargaining power, Informal sector, Government (linguistics), Market power, Environmental policy

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