Greg Mankiw offers a simple example to establish that a reduction in the tax rate on capital income (in a closed economy) raises wages in the long run. John Cochrane patiently typed the solution. And Larry Summers argues on his blog that US realities are not well captured by Mankiw’s example.
In a CEPR discussion paper, Jan van Ours and Yuxin Yao conclude that in the Netherlands,
for male workers there is a significant wage penalty of dialect-speaking while for female workers there is no significant difference.