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Powell, David – Journal of Human Resources, 2012
Income taxes distort the relationship between wages and nontaxable amenities. When the marginal tax rate increases, amenities become more valuable as the compensating differential for low-amenity jobs is taxed away. While there is evidence that the provision of amenities responds to taxes, the literature has ignored the consequences for job…
Descriptors: Work Environment, Wages, Tax Rates, Employment Practices