This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Financing Social Welfare: the Attraction of Broad Bases

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Martine Carre-Tallon
Benjamin Carton
Stephane Gauthier

Additional information is available for the following registered author(s):

Abstract

The idea that a drop in social welfare contributions being offset by an increase in VAT could favour employment and competitiveness is a subject of important controversies. This not does suggest that that such a kind of measures could not be neutral. In the long run, on an unchanged budgetary basis, lowering contributions should have positive effects of promoting employment, albeit modestly. In the short run, while the policy improves competitiveness, it undermines household purchasing power. Furthermore, calculations made at a detailed sector level reveal that this switch does not benefit all sectors uniformly. Indeed, in top of the range activities that form the heart of European specialisation, the increase in competitiveness is quite limited. The trade-off is therefore the following: either to promote demand for unskilled labour over the long term or boost the competitiveness of those sectors exposed over the short term. This is a particular instance of the usual observation according to which efficiency considerations are not independent from distributive purposes.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.cepii.fr/anglaisgraph/publications/lettre/summary/2007/let269ang.htm
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Article provided by CEPII research center in its journal La Lettre du CEPII.

Volume (Year): (2007)
Issue (Month): 269 (August)
Pages:
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:cii:cepill:2007-269

Contact details of provider:
Postal: 9 rue Georges Pitard, 75740 Paris Cedex 15
Phone: 33 01 53 68 55 00
Fax: 33 01 53 68 55 01
Web page: http://www.cepii.fr
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords: social VAT; wages; purchasing power; household; tax and budget policy; economic policy; budgetary policy;

Find related papers by JEL classification:
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

Statistics
Access and download statistics

Did you know? Authors can create their own profile with links to their works on the RePEc Author Service.

This page was last updated on 2009-11-22.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.