Green Taxation,Health Effect and Wage Inequality:Research Based on the Heterogeneous Generation Overlapping Model
This paper constructs a heterogeneous overlapping generations model including green taxation to study the impact of green taxation on wage inequality and its mechanism.Numerical simulations show that green taxation has a U-shaped relationship with wage inequality.The corresponding mechanism is that in the lower(higher)tax rate range,increasing the green tax rate can promote(hinder)the upward educational mobility of children from low-skilled families,which leads to an increase(decrease)in the supply of high-skilled labor and thus narrows(expands)wage inequality.The increase in the green tax rate gives rise to a more substantial increase in the health level of low-skilled labor,leading to a narrowing of wage inequality.The extended study reveals that moderately increasing the green tax rate increases educational mobility by extending life expectancy and reducing the medical burden of environmental diseases,which reduces wage inequality.The results show that moderate green taxation can synergistically improve environmental quality,narrow the income gap,and promote economic development,to achieve high-quality economic development.
Green TaxationHealth EffectEducation Intergenerational MobilityWage Inequality