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Economic interpretation of the effects of social contributions on labor factor

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  • Daniel Toba

    (University of Craiova Faculty of Economics and Business Administration)

  • Dalia Simion

    (University of Craiova Faculty of Economics and Business Administration)

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    Abstract

    About social contributions can be said to have a great impact on labor use and efficiency in general. Affecting economic efficiency is in fact a very complex phenomenon resulting from the possibility of translation contributions. As for taxes, social contributions translation can be done by or employed by sales prices. Shift to avoid the consequences of social contributions, which is accepted hypothesis confrm between direct wages and social costs involved an arbitration. The most important, however, is the incidence of social contributions on labor use. This comes either from a bearing higher contributions by employees, either from an increase in labor costs compared to capital, ie an increased contribution from the company to fund social security.

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    Bibliographic Info

    Article provided by University of Craiova, Faculty of Economics and Business Administration in its journal Annals of Computational Economics.

    Volume (Year): 1 (2011)
    Issue (Month): 39 ()
    Pages: 90-93

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    Handle: RePEc:aio:aucsse:v:1:y:2011:i:39:p:90-93

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    Related research

    Keywords: social contributions; the elasticity of labor demand; labor supply elasticity; firm competitiveness;

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