Commuting, congestion tolls and the structure of the labour market: Optimal congestion pricing in a wage bargaining model KU Leuven University of Antwerp
In this paper we study optimal congestion pricing in a wage bargaining model. We first show that, compared to a competitive labour market environment, wage bargaining may lead to substantially different optimal transport taxes. Second, bargaining implies that exogenous increases in congestion levels and in transport taxes raise negotiated wages and reduce employment levels; the strength of these effects depends on the union's attitude towards ...