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Net Taxes,Income Stabilization and Regional Job Flows in Sweden

  • Andersson, Linda

    ()

    (Department of Business, Economics, Statistics and Informatics)

Registered author(s):

    The objective of this paper is to empirically analyze the relationship between job flows and regional income stabilization provided by the national tax and transfer systems. The analysis is based on an administrative panel data set containing all sectors in 20 Swedish regions for the time period 1989-2000. Controlling for unobserved regional effects we find that a high net tax-income ratio tends to decrease the rate of jobs that are created and increase the rate of job destruction, increasing the overall rate of job reallocation in the regions. In an attempt to separate out the part of the national tax-transfer system that is aimed at stabilizing the income path over time we find that only job creation is affected, i.e., regions where the income path is more stable tend to have a lower rate of intra-industry job creation.

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    Paper provided by Örebro University, School of Business in its series Working Papers with number 2008:5.

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    Length: 26 pages
    Date of creation: 12 Jun 2008
    Date of revision:
    Handle: RePEc:hhs:oruesi:2008_005
    Contact details of provider: Postal: Örebro University School of Business, SE - 701 82 ÖREBRO, Sweden
    Phone: 019-30 30 00
    Fax: 019-33 25 46
    Web page: http://www.oru.se/Institutioner/Handelshogskolan-vid-Orebro-universitet/

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    1. Christopher Pissarides, 2002. "Consumption and savings with unemployment risk: implications for optimal employment contracts," LSE Research Online Documents on Economics 2211, London School of Economics and Political Science, LSE Library.
    2. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, June.
    3. Jesper Antelius & Lars Lundberg, 2003. "Competition, Market Structure and Job Turnover," Journal of Industry, Competition and Trade, Springer, vol. 3(3), pages 211-226, September.
    4. Dale T. Mortensen & Christopher A. Pissarides, 1993. "Job Creation and Job Destruction in the Theory of Unemployment," CEP Discussion Papers dp0110, Centre for Economic Performance, LSE.
    5. Davis, Steven J. & Haltiwanger, John, 1999. "Gross job flows," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 41, pages 2711-2805 Elsevier.
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