How to Measure the Tax Burden on Labour at the Macro-Level?

Jan-Egbert Sturm and Bjørn Volkerink

No 963, CESifo Working Paper Series from CESifo

Abstract: The purpose of this paper is threefold. First, we survey the way in which the tax burden on labour has been proxied for in recent multi-country macro-economic studies. Second, we critically evaluate these proxies. Finally, we examine to what extent the conclusions of some studies change if some alternative indicator for the tax burden on labour is employed. We conclude that the widely used tax ratios as developed by Mendoza et al. (1994) may not be very reliable. The choice of the indicator for the tax burden on labour is also shown to affect the conclusions of some well-known empirical models.

Keywords: tax ratios; labour; average effective tax rates; unemployment (search for similar items in EconPapers)
JEL-codes: H20 H29 (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_963

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