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Employment and productivity: The role of the tax wedge

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  • Andrea FESTA

    () (University of Salerno – DISES)

Abstract

After the economic crisis, many countries aim at reducing unemployment and foster productivity. To address these issues one of the most common policy indications recommends lowering the tax wedge on labour in order to increase employment and growth. As a consequence, a review of the empirical studies focused on the relation between tax wedge, employment and productivity is an useful and demanding exercise, especially in those European countries where the topic is on the front page of the domestic policy debate because the productivity growth is low and the tax wedge on labour is high.

Suggested Citation

  • Andrea FESTA, 2015. "Employment and productivity: The role of the tax wedge," EuroEconomica, Danubius University of Galati, issue 2(34), pages 139-150, November.
  • Handle: RePEc:dug:journl:y:2015:i:2:p:139-150
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    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/2942
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    References listed on IDEAS

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    1. Michèle Belot & Jan C. van Ours, 2004. "Does the recent success of some OECD countries in lowering their unemployment rates lie in the clever design of their labor market reforms?," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 621-642, October.
    2. Coenen, Günter & McAdam, Peter & Straub, Roland, 2008. "Tax reform and labour-market performance in the euro area: A simulation-based analysis using the New Area-Wide Model," Journal of Economic Dynamics and Control, Elsevier, vol. 32(8), pages 2543-2583, August.
    3. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Economics Department Working Papers 486, OECD Publishing.
    4. DING, Hong, 2008. "Can Tax Wedge Affect Labor Productivity?. A Tsls Fixed Model On Oecd Panel Data," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 5(1), pages 15-32.
    5. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Books, National Bureau of Economic Research, Inc, number abra56-1.
    6. Gunter Coenen & Peter McAdam & Roland Straub, 2005. "Tax reform and labour market performance in the Euro area: a macroeconomic assessment," Proceedings, Board of Governors of the Federal Reserve System (U.S.).
    7. Charles R. Hulten, 2001. "Total Factor Productivity: A Short Biography," NBER Chapters, in: New Developments in Productivity Analysis, pages 1-54, National Bureau of Economic Research, Inc.
    8. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Chapters, in: Resource and Output Trends in the United States since 1870, pages 1-23, National Bureau of Economic Research, Inc.
    9. Nickell, Stephen & Nunziata, Luca, 2000. "Employment patterns in OECD countries," LSE Research Online Documents on Economics 20198, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Germana Bottone, 2020. "The Effect of Globalisation on Labour Market Institutions in Europe," Working Papers 0052, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.

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    Keywords

    tax wedge; employment; productivity.;

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