Tax Rates and Corruption: Labour-market and Fiscal Effects. Empirical cross-country comparisons on OECD and transition countries
AbstractThe paper attempts to explain how tax rates, the extent of corruption and various institutional aspects of the labour market influence the relative size of different segments (unemployment, employment, self-employment and activity in the hidden economy) of the labour market as well as the tax revenues in both developed market economies and transition countries. Based on theoretical assumptions and methodological considerations, alternative regression calculations are carried out on data for 28 OECD countries and partly on 18 transition countries for the period 1995 to 2000. A methodological novelty of the investigation is the establishment and testing of a new variable, the subjective tax rate.
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Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Research Reports with number 309.
Length: 80 pages including 27 Tables and 16 Figures
Date of creation: Sep 2004
Date of revision:
Publication status: Published as wiiw Research Report
Find related papers by JEL classification:
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- E26 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
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