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Die Effekte einer Lohnnebenkostensenkung für die Volkswirtschaft und die Wettbewerbsfähigkeit

Author

Listed:
  • Berger Johannes

    (EcoAustria, Wien, Vienna, Austria)

  • Strohner Ludwig

    (EcoAustria, Wien, Vienna, Austria)

Abstract

The tax and social contribution ratio in Austria is very high by European standards, taxes on income in particular. This is reflected in a very wide tax wedge between labour costs and net income. The particularly high inflation in Austria in recent years has led to high wage increases and a loss of competitiveness. Based on a model analysis, it is shown that a reduction of taxes on the wage-sum by 1.4 % of GDP dampens the development of wage costs and increases employment by around 0.9 % or 40,000 persons. In addition, the reform reduces the GDP deflator by 0.9 to 0.7 percentage points and implies an increase in the real export volume by 1.4 % in the first three years.

Suggested Citation

Handle: RePEc:vrs:wipobl:v:2024:y:2024:i:1:p:48-55:n:1001
DOI: 10.2478/wpbl-2024-0001
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References listed on IDEAS

as
  1. Berger, Johannes & Strohner, Ludwig, 2022. "Extensions of the Energy PUblic Policy Model for Austria and other European countries E-(PuMA)," Research Papers 19, EcoAustria – Institute for Economic Research.
  2. Beetsma, Roel & Furtuna, Oana & Giuliodori, Massimo & Mumtaz, Haroon, 2021. "Revenue- versus spending-based fiscal consolidation announcements: Multipliers and follow-up," Journal of International Economics, Elsevier, vol. 131(C).
  3. Hildegunn E. Stokke, 2021. "Regional payroll tax cuts and individual wages: heterogeneous effects of worker ability and firm productivity," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(6), pages 1360-1384, December.
  4. Ms. Anja Baum & Mr. Marcos Poplawski Ribeiro & Miss Anke Weber, 2012. "Fiscal Multipliers and the State of the Economy," IMF Working Papers 2012/286, International Monetary Fund.
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  6. Berger, Johannes & Strohner, Ludwig, 2020. "Documentation of the PUblic Policy Model for Austria and other European countries (PUMA)," Research Papers 11, EcoAustria – Institute for Economic Research.
  7. Benjamin Carton & Emilio Fernández Corugedo & Mr. Benjamin L Hunt, 2017. "No Business Taxation Without Model Representation: Adding Corporate Income and Cash Flow Taxes to GIMF," IMF Working Papers 2017/259, International Monetary Fund.
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More about this item

JEL classification:

  • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
  • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
  • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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