Higher corporate taxes lead to lower manufacturing wages, study finds.
The article explores how corporate taxes affect manufacturing wages in different countries over 25 years. They found that higher corporate tax rates lead to lower wages. The study also shows that neighboring countries' tax policies can impact domestic wages. The researchers used spatial modeling techniques to analyze the data and found no spatial autocorrelation in their model. This research contributes to understanding how taxes influence wages and fits into the new economic geography literature.