THE IMPACT OF LABOR TAXATION ON JOB CREATION AND UNEPLOYMENT

• Authors: Kosi Tanja , Bojnec Štefan
• Languages of publication: EN

Abstracts

EN

This paper investigates the relationship between labor taxation and labor market performance in the European Union (EU), with the special attention to the new EU member states. The impact of the labor tax wedge on employment/unemployment rates and their growth are analyzed. We employ ordinary least square (OLS) regression framework, which confirms very weak positive association between the labor taxes and the unemployment rate in the EU. The panel regression framework confirms statistically significant negative association between tax wedge on the labor costs and employment growth in the EU as a whole, though the correlation coefficient is rather small to make the conclusions. The negative impact of the labor taxation on the employment growth tends to be larger in the eight EU transition countries than in the rest of the EU.

Keywords

EN

EMPLOYMENT; LABOR MARKET PERFORMANCE; LABOR TAXATION; UNEMPLOYMENT RATE

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2006
• Volume: 54
• Issue: 7
• Pages: 652-667
• Document type: ARTICLE

Contributors

author

Kosi Tanja

author

Bojnec Štefan

• T. Kosi, Ekonomický ústav SAV, Sancová 56, 811 05 Bratislava 1, Slovak Republic

Identifiers

CEJSH db identifier

06SKAAAA01603512