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Working Paper 11-07 - Le programme national de réforme de la Belgique - Effets macroéconomiques de réductions de charges sur le travail

Author

Listed:
  • Delphine Bassilière
  • Francis Bossier
  • Igor Lebrun
  • Peter Stockman

Abstract

Every three years, each EU member state is required to set out its political priorities related to economic growth and job creation in a so-called National Reform Programme ( NRP ). Gauged by the latest medium-term economic outlook produced by the Federal Planning Bureau, compliance with the main macroeconomic objectives contained in the Belgian NRP will still require sizable efforts, especially regarding the labour market. Furthermore, our analysis shows that reducing social security contributions in order to lower the tax wedge on labour as foreseen in the NRP , is efficient in increasing the employment rate, especially when targeted at low wage earners, but also that such policies have a negative effect on the objectives related to public finances and CO 2 emissions.

Suggested Citation

  • Delphine Bassilière & Francis Bossier & Igor Lebrun & Peter Stockman, 2007. "Working Paper 11-07 - Le programme national de réforme de la Belgique - Effets macroéconomiques de réductions de charges sur le travail," Working Papers 200711, Federal Planning Bureau, Belgium.
  • Handle: RePEc:fpb:wpaper:200711
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    More about this item

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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