"Redistributive Labor Income Taxation with Directed Technical Change in a Unionized Economy"

Abstracts : What are the implications of endogenous directed technical change for the design of redistributive income taxes in a unionized economy ? I study this within a general equilibrium framework featuring two types of labor that supply labor along the extensive margin. Wages are determined through union–firm bargaining, while the direction of technology is chosen endogenously by profit‐maximizing firms, following the directed technical change framework of Acemoglu (2007).