Adriana Cassoni () (Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República)
Abstract
The existence and magnitude of the effects of labour taxes cuts on the employment level is here analised using data for 7 Uruguayan industies along 1993-2001. A multivariate model for labour demand is especified, considering wages and product demand as endogenous variables. The main conclusion drawn refers to the heterogeneity of the effects across economic activities, thus pointing at the inconvenience of the use of sectorally homogeneous fiscal policies. The results are robust to the use of different models, while differentiating between contributions paid by employers and employees is found to be a key element for correctly identifying and measuring the effects under analysis. The especification of a bargaining model is strongly suggested. Further, the inclusion of the mechanisms determining the degree of fiscal evasion and the existence of assymmetric responses of the employment levels to tax increases and reductions are also recommended.
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.
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.: