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Creators/Authors contains: "Mousavi, Negin"

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  1. ; ; ; (, AEA Papers and Proceedings)
    Progressive income taxes distort hiring and wages when firms have labor market power. We characterize this novel monopsony cost of progressivity in a simple monopsony economy and derive efficiency wedges that depend on progressivity. A simple quantification of these wedges points to the possibility that the monopsony cost may be of similar magnitudes to redistribution and insurance benefits. 
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