Shifting taxes away from labour enhances equity and fiscal efficiency
Flavia Coda Moscarola,
Ugo Colombino,
Francesco Figari and
Marilena Locatelli
Journal of Policy Modeling, 2020, vol. 42, issue 2, 367-384
Abstract:
This paper analyzes the effects of a hypothetical tax reform in Italy, which makes current tax credits more generous and refundable, shifting the tax burden from labour to property. Our methodology contains novel features of great relevance for policy analysis: first, a structural model of labour supply of both employees and self-employed; second, a labour market equilibrium model that encompasses demand side constraints; last, detailed tax system simulation under fiscal neutrality. The empirical findings provide guidance for policy makers’ actions to enhance equity and efficiency of tax system and confirm the relevance of the methodological approach.
Keywords: Equity; Efficiency; Labour market equilibrium; Tax shifting; Microsimulation (search for similar items in EconPapers)
JEL-codes: C53 D31 H31 J22 J23 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161893819300894
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:42:y:2020:i:2:p:367-384
DOI: 10.1016/j.jpolmod.2019.07.002
Access Statistics for this article
Journal of Policy Modeling is currently edited by A. M. Costa
More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().