ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Effect of Wage Subsidy on Prices, Production and Income Distribution

Effect of Wage Subsidy on Prices, Production and Income Distribution Lily Datta This paper attempts to examine the effect of a wage subsidy for the industrial sector, financed by a value added tax, on the distribution of income between wage earners and non-wage earners. The author also examines the effects of such a policy on the price structure, the level of final demand and the level of production.

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