The Welfare State and Competitiveness

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The Welfare State and Competitiveness

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Title: The Welfare State and Competitiveness
Author: Perotti, Roberto; Alesina, Alberto

Note: Order does not necessarily reflect citation order of authors.

Citation: Alesina, Alberto, and Roberto Perotti. 1997. The welfare state and competitiveness. American Economic Review 87(5): 921-939.
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Abstract: In all industrial countries, fiscal policy is increasingly about redistribution. In this paper, we study redistribution across different types of agents in a world characterized by the presence of labor unions and distortionary taxation. We show that an increase in transfers financed by distortionary taxation has nonlinear effects on unit labor costs relative to the other countries, depending on the degree of centralization of the wage-setting process in the labor market. We find considerable empirical support for the model in a sample of 14 OECD countries.
Published Version: http://www.jstor.org/stable/2951333
Terms of Use: This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:4553027

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  • FAS Scholarly Articles [7362]
    Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University
 
 

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