Employment and Taxes

Stephen Nickell

CEP Discussion Papers from Centre for Economic Performance, LSE

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

Keywords: Employment; Taxation; Labour Supply (search for similar items in EconPapers)
JEL-codes: H2 J2 (search for similar items in EconPapers)
Date: 2004-05
New Economics Papers: this item is included in nep-lab, nep-ltv and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

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Related works:
Working Paper: Employment and taxes (2004)
Working Paper: Employment and Taxes (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0634

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