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|Title:||Which Democracies Pay Higher Wages?|
|Publisher:||Dept. of Economics, University of Leicester|
|Abstract:||The labor share of income varies markedly across the set of democracies. A model of the political process, situated in a simple macroeconomic environment is analyzed in which the cause of this variation is linked to di erences in the form of democracy - in particular the adoption of a presidential or parliamentary system. Presidential regimes are associated with lower taxation but lower wages. Robust evidence for the negative impact of a presidential system on the labor share is obtained using a Bayesian Model Averaging approach. Evidence is also provided that this is due to lower taxation.|
|Series/Report no.:||Papers in Economics;11/09|
|Appears in Collections:||Reports, Dept. of Economics|
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