TY - RPRT AU - Kessing, Sebastian G. AU - Konrad, Kai A. TI - Union Strategy and Optimal Income Taxation PY - 2005/Mar/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 1545 UR - https://www.iza.org/publications/dp1545 AB - Restrictions on work hours are more important in countries with a large welfare state. We show that this empirical observation is consistent with the strategic effects of such restrictions in a welfare state in the context of optimal direct taxation in the tradition of Mirrlees (1971). Our results also apply to non-welfarist states which have income redistribution, but not in purely extortionary states. KW - labor unions KW - work hours KW - optimal income taxation ER -