Economics at your fingertips  

Employment stimulating tax incentives in the Hungarian labour market

András Svraka, István Szabó and Viktor Hudecz
Additional contact information
István Szabó: Ministry for National Economy, Department of Tax Planning
Viktor Hudecz: Ministry for National Economy, Department of Tax Planning

Public Finance Quarterly, 2013, vol. 58, issue 4, 386-402

Abstract: Owing to a number of distinct groups in the labour force, the labour force participation rate in Hungary and most other Central European economies lags behind the European Union average. Empirical literature shows that tax policy can effectively incentivise the labour supply of these groups at the extensive margin. In this paper we discuss arguments for targeted employers’ tax reliefs from a labour market perspective. Based on household income, we analyse the attributes of households receiving the employment tax credit phased out in 2012 and the targeted tax incentives implemented in the 2013 Job Protection Act. Our results show that numerous beneficiaries of the general employment tax credit live in households above the median income, while a higher share of low-income households benefit from the targeted incentives.

Keywords: labour force participation; taxation; targeted tax incentives* (search for similar items in EconPapers)
JEL-codes: H24 H31 J21 (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) ... bo-hudecz-2013-4.pdf (application/pdf)

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:

Access Statistics for this article

Public Finance Quarterly is currently edited by Erzsebet Nemeth

More articles in Public Finance Quarterly from State Audit Office of Hungary
Bibliographic data for series maintained by Pal Peter Kolozsi ( this e-mail address is bad, please contact ).

Page updated 2022-05-03
Handle: RePEc:pfq:journl:v:58:y:2013:i:4:p:386-402