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Tax Reform and Employment in Europe

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Author Info
John Hutton
Anna Ruocco

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Abstract

The purpose of this paper is to investigate to what extent modifications of tax systems between 1985 and 1992 within major parts of the European Union contributed to changes in the labour market. The principal countries under investigation are Germany, Italy, France and the United Kingdom, and the method of investigation is the numerical simulation of a multi-country general equilibrium model. Changes in VAT rates and in the personal income tax schedule are investigated. We conclude that a non-trivial part of the labour market changes may be due to reactions of the market to changes in these tax rates. Copyright Kluwer Academic Publishers 1999

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File URL: http://hdl.handle.net/10.1023/A:1008730928998
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Publisher Info
Article provided by Springer in its journal International Tax and Public Finance.

Volume (Year): 6 (1999)
Issue (Month): 3 (August)
Pages: 263-287
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Handle: RePEc:kap:itaxpf:v:6:y:1999:i:3:p:263-287

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Web page: http://www.springerlink.com/link.asp?id=102915

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Keywords: applied general equilibrium; labour markets; tax reform;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lockwood, Ben & Manning, Alan, 1993. "Wage setting and the tax system theory and evidence for the United Kingdom," Journal of Public Economics, Elsevier, vol. 52(1), pages 1-29, August. [Downloadable!] (restricted)
  2. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June. [Downloadable!] (restricted)
  3. David G. Blanchflower & Andrew J. Oswald, 1990. "The Wage Curve," NBER Working Papers 3181, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Nickell, Stephen, 1998. "Unemployment: Questions and Some Answers," Economic Journal, Royal Economic Society, vol. 108(448), pages 802-16, May. [Downloadable!] (restricted)
  5. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September. [Downloadable!] (restricted)
  6. Bean, C R & Layard, P R G & Nickell, S J, 1986. "The Rise in Unemployment: A Multi-country Study," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages S1-22, Supplemen. [Downloadable!] (restricted)
  7. Knoester, Anthonie & van der Windt, Nico, 1987. "Real Wages and Taxation in Ten OECD Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(1), pages 151-69, February.
  8. Fortin, Bernard & Lacroix, Guy, 1997. "A Test of the Unitary and Collective Models of Household Labour Supply," Economic Journal, Royal Economic Society, vol. 107(443), pages 933-55, July. [Downloadable!] (restricted)
  9. Campbell, Carl & Orszag, J. Michael, 1998. "A model of the wage curve," Economics Letters, Elsevier, vol. 59(1), pages 119-125, April. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole, 2005. "Alternative Approaches to Discrete Working Time Choice in an AGE Framework," ZEW Discussion Papers 05-62, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  2. Peichl, Andreas, 2008. "The Benefits of Linking CGE and Microsimulation Models: Evidence from a Flat Tax Analysis," IZA Discussion Papers 3715, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Christoph Böhringer & Klaus Conrad & Andreas Löschel, 2003. "Carbon Taxes and Joint Implementation. An Applied General Equilibrium Analysis for Germany and India," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(1), pages 49-76, January. [Downloadable!] (restricted)
  4. Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole & Schubert, Stefanie, 2006. "Analysing welfare reform in a microsimulation-AGE model : the value of disaggregation," ZEW Discussion Papers 06-76, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  5. Christoph Böhringer & Wolfgang Wiegard & Collin Starkweather & Anna Ruocco, 2003. "Green Tax Reforms and Computational Economics A Do-it-yourself Approach," Computational Economics, Springer, vol. 22(1), pages 75-109, August. [Downloadable!] (restricted)
  6. John P. Hutton & Anna Ruocco, . "Can Tax Progression Raise Employment? A Study of Four European Countries," Discussion Papers 99/21, Department of Economics, University of York. [Downloadable!]
  7. Boeters, Stefan & Feil, Michael, 2008. "Heterogeneous Labour Markets in a Microsimulation-AGE Model: Application to Welfare Reform in Germany," ZEW Discussion Papers 08-043, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  8. Böhringer, Christoph, 2002. "Environmental tax differentiation between industries and households - implications for efficiency and employment : a multi-sector intertemporal CGE analysis for Germany," ZEW Discussion Papers 02-08, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  9. Böhringer, Christoph & Conrad, Klaus & Löschel, Andreas, . "Carbon Taxes and Joint Implementation," IVS discussion paper series 591, Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim. [Downloadable!]
  10. Sijbren Cnossen, 2003. "How Much Tax Coordination in the European Union?," Asia-Pacific Financial Markets, Springer, vol. 10(6), pages 625-649, November. [Downloadable!] (restricted)
  11. Stefan Boeters & Michael Feil & Nicole Gürtzgen, 2005. "Discrete Working Time Choice in an Applied General Equilibrium Model," Computational Economics, Springer, vol. 26(3), pages 1-29, November. [Downloadable!] (restricted)
    Other versions:
  12. Böhringer, Christoph & Conrad, Klaus & Löschel, Andreas, 2000. "Carbon taxes and general joint implementation : an applied general equilibrium analysis for Germany and India," ZEW Discussion Papers 00-45, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  13. Christoph Boehringer & Stefan Boeters & Michael Feil, 2004. "Taxation and Unemployment: An Applied General Equilibrium Approach," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  14. Boeters, Stefan & Böhringer, Christoph & Feil, Michael, 2002. "Taxation and unemployment : an applied general equilibrium approach for Germany," ZEW Discussion Papers 02-39, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  15. Melanie Arntz & Stefan Boeters & Nicole Gürtzgen & Stefanie Schubert, 2006. "Analysing Welfare Reform in a Microsimulation-AGE Model," Computing in Economics and Finance 2006 109, Society for Computational Economics. [Downloadable!]
  16. Mouez Fodha & Patricia Le Maitre, 2007. "Transition démographique, chômage involontaire et redistribution intergénérationnelle : simulations dans un cadre d'équilibre général à générations imbriquées," Documents de travail du Centre d'Economie de la Sorbonne v07011, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne. [Downloadable!]
    Other versions:
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