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Exact(42)
The focus will be placed on their economic incidence, i.e., who effectively bears the tax burden and what are its main economic effects (on wages, labour costs and equilibrium employment), rather than on the legal incidence.4 This involves analysing the change in behaviour of economic agents after the establishment of the tax.
Why such pushback if the effects on wages are likely to be small?
In most places the recession that followed the financial crisis had dire effects on wages.
Brexit without free movement is likely to see current EU migrants and future flows go underground, with negative knock-on effects on wages, public health and safety.
And you couple that with a potential slowdown and the effects on wages, what it places in jeopardy now is the ability of people to handle their own personal debt.
"June's UK consumer prices figures show that the continued weakness of inflation is boosting households' spending power without having any adverse knock-on effects on wages or spending," said Samuel Tombs, a senior UK economist at the Capital Economics consultancy.
Similar(18)
There are once again no significant effects on wage.
This has raised fears of double-digit inflation and second-round effects on wage negotiation.
Furthermore, negative effects on wage levels are found, the absolute size of which are larger for youth than for adults.
Also partly countervailing indirect and general equilibrium effects on wage bargaining, incentives of targeted and third party employers and workers etc. need to be explicitly evaluated, since they contribute to a net employment effect.
Migration might have a small depressive effect on wages at the lower end of the scale.
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CEO of Professional Science Editing for Scientists @ prosciediting.com