Does Labour Taxation Affect Unemployment? Croatian Worker in International Perspective

Primož Dolenc, Suzana Laporšek and Anamarija Šeparović

Economic Research-Ekonomska Istraživanja, 2011, vol. 24, issue 3, 86-101

Abstract: The paper examines the issue of labour taxation of Croatian worker in comparison to workers in OECD and EU Member States. By using hierarchical cluster analysis it studies the relations between tax wedge and labour market outcomes, whereas with panel regression analysis, performed on data for 39 countries during 2000–2008 period, estimates the impact of tax wedge on unemployment rate. The empirical estimates show that Croatia classifies among countries with higher unemployment and lower employment rate, characterized with higher tax wedge. Furthermore, the estimates of the regression analysis showed that the tax wedge at all three wage levels (i.e. 67 %, 100 % and 167 % of average wage) has a significant positive impact on unemployment rate. This signifies that Croatia, as other studied countries, should continue with reduction of tax wedge, as this would alleviate unemployment problems and stimulate job creation.

Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2011.11517469 (text/html)
Access to full text is restricted to subscribers.

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:taf:reroxx:v:24:y:2011:i:3:p:86-101

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2011.11517469

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().