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How Does a Pigou Tax Work? Why Might a Pigou

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How does a Pigou tax work? Why might a Pigou tax fail to achieve an efficient outcome?


Definitions:

Grievance

A formal complaint by an employee or a group of employees, usually against an employer, regarding workplace issues or disputes.

Arbitration

Conflict resolution procedure in which an arbitrator or arbitration board determines a binding settlement.

Right-to-Work Laws

Legislation that ensures that joining a union is not a condition of employment, allowing employees the choice to join or refrain from joining a union.

Terminate Employment

The process of formally ending the employment relationship between an employer and an employee.

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