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Payroll taxes, capital grants and Irish unemployment

Author

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  • Frank Barry

Abstract

This paper explores the role of factor prices in macroeconomic models which embody the frequently-encountered Classical, Keynesian, and Structuralist perspectives on the caused of Irish unemployment. It is argued that within each framework a strong case can be made for at least partial repleacement of the current IDA capital-grants scheme by a policy of payroll-tax reductions for newly-created jobs. Various objections to this type of proposal have been raised in the literature, and these are dealt with here on a point-by-point basis. A range of estimates is given for the likely employment effects and exchequer costs of the proposed policy.

Suggested Citation

  • Frank Barry, 1989. "Payroll taxes, capital grants and Irish unemployment," Working Papers 19894PP, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:19894pp
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    Download full text from publisher

    File URL: http://hdl.handle.net/10197/1379
    File Function: First version, 1989
    Download Restriction: no
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    Cited by:

    1. Jonathan R. Barton & Felipe GutiƩrrez-Antinopai & Miguel Escalona Ulloa, 2021. "Adaptive Capacity as Local Sustainable Development: Contextualizing and Comparing Risks and Resilience in Two Chilean Regions," Sustainability, MDPI, vol. 13(9), pages 1-32, April.

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