Taxation of Labour Income and the Skilled-Unskilled Wage Inequality

摘要: Using a simple general equilibrium model of small open economy that produces (i) an industrial good, (ii) agricultural and (iii) sector specific intermediate under competitive conditions, this paper examines the impact tax on labour skilled-unskilled wage inequality. It is shown that, when all goods are traded, in increases On other hand, good has opposite effect. However, non-traded, either two sectors negative. Furthermore, irrespective whether or not skilled-skilled