Payroll tax reductions for the low paid - Sciences Po Accéder directement au contenu
Article Dans Une Revue OECD Economic Studies Année : 2000

Payroll tax reductions for the low paid

Résumé

A review of different theoretical models confirms that economists of opposing beliefs find themselves agreeing about the usefulness of employment subsidies. In a country with a relatively high wage floor, they reduce the cost of labour for firms. In countries where wage floors are low, subsidies can increase the net real wage of workers. In both cases, employment is likely to rise. Generally, allowing the price system to perform its allocative function while pursuing distributive objectives through the tax system is welfare enhancing. It is therefore surprising that such a remedy has not yet been implemented on a large scale in all countries suffering from labour market problems. One reason is that there may be a problem of transition. Empirical evidence suggests that reductions in taxes on labour will not solve employment and distribution problems, but will, in the long run, promise progress in both.
Fichier principal
Vignette du fichier
ocdefitou.pdf (152.87 Ko) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

hal-00972903 , version 1 (03-04-2014)

Identifiants

  • HAL Id : hal-00972903 , version 1
  • SCIENCESPO : 2441/5572

Citer

Jean-Paul Fitoussi. Payroll tax reductions for the low paid. OECD Economic Studies, 2000, 2000-2 (31), pp.115-131. ⟨hal-00972903⟩
127 Consultations
488 Téléchargements

Partager

Gmail Facebook X LinkedIn More