Tax Wedge in OECD Countries - A New Evidence
| Authors | |
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| Year of publication | 2017 |
| Type | Article in Proceedings |
| Conference | CONFERENCE PROCEEDINGS INTERNATIONAL SCIENTIFIC CONFERENCE Economic Policy in Global Enviroment |
| MU Faculty or unit | |
| Citation | |
| Keywords | Employment; Labor Market; Taxation; Tax Wedge |
| Description | Taxation of labor is one of the most important areas in economy, from which government can collect their taxes. Excessive taxation however can have distortionary effect on whole labor market. Aim of this paper is therefore to provide additional empirical evidence of distortionary effect of selected tax indicator on employment in OECD countries. Annual data were collected from period 2000-2016, which should represent the most recent trend. Both fixed-effect panel estimation and dynamic panel estimation were used as a statistical method to obtain robust results. Specific characteristics of labor market such as minimum wage and negotiating power of unions were also part of analysis. Main result of this paper is a negative effect of tax wedge increase on labor force participation rate in OECD countries. |
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