Employment and taxes

Nickell, Stephen (2004) Employment and taxes. CEPDP (634). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 0753017601

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Abstract

This paper considers the impact of taxation policy on market work. On the basis of the evidence, we find that a 10 percentage point rise in the tax wedge will reduce overall labour input provided via the market by around 2 per cent of the population of working age. The tax wedge is the sum of the payroll, income and consumption tax rates. This only explains a minority of the market work differentials across count ries. Much of the remainder is probably down to the differences in the social security systems supporting the unemployed, the sick and disabled and the early retired.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2004 Stephen Nickell
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HJ Public Finance
JEL classification:	H - Public Economics > H2 - Taxation, Subsidies, and Revenue J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement
Date Deposited:	25 Jul 2008 10:30
Last Modified:	15 Sep 2023 22:57
URI:	http://eprints.lse.ac.uk/id/eprint/19955

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