Tax Wedge and Skills: Case of Poland in International Perspective

Marek Góra, Artur Radziwill (), Agnieszka Sowa and Mateusz Walewski

No 64, CASE Network Reports from CASE-Center for Social and Economic Research

Abstract: The project intended to explain the causes of high structural unemployment in Poland. It is generally believed that the high level of unemployment in Poland is determined to a decisive degree by factors such as a restrictive labor code, high degree of unionization and/or the unemployment benefits system. The research provides macroeconomic and microeconomic evidence that the employment consequences of a tax wedge can be more severe for the low-skilled. Consequently, it argues that a high tax wedge can be potentially more harmful in countries abundant in this kind of labour. These results should send a strong message to policymakers, especially those in Central and Eastern Europe. The project was financed by a research grant provided by the Ministry of Education and Science, Poland and conducted by a team of CASE researchers: Marek Gora (coordinator), Mateusz Walewski, Artur Radziwill and Agnieszka Sowa. It was completed in the first quarter of 2006.

Keywords: tax wedge; labour market; employment; skills; New Member States; Poland (search for similar items in EconPapers)
Pages: 52 Pages
Date: 2006
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:sec:cnrepo:0064

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