Arbeitspapier

The Wedge

It is often argued that the quantity which is traded on the market is independent of the side of the market which is taxed. However, this assertion need not hold, especially in imperfectly competitive markets like that for labour. Taking an efficiency wage economy as an example, it is shown that the legal incidence of social security contributions will affect the economic incidence if unemployment compensation is subject to social security contributions. Since this is the case in numerous OECD countries, the wedge between producer costs and the net wage might be an inappropriate device for measuring the impact of social security contributions on wages and employment.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 71

Klassifikation
Wirtschaft
Taxation and Subsidies: Incidence
Labor Contracts
Social Security and Public Pensions
Thema
Efficiency wages
social security contributions
tax incidence
unemployment benefits
Lohnsteuer
Sozialversicherungsbeitrag
Steuerinzidenz
Steuerwirkung
Arbeitskosten
Arbeitsmarkttheorie
Effizienzlohn
Theorie

Ereignis
Geistige Schöpfung
(wer)
Goerke, Laszlo
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
1999

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Goerke, Laszlo
  • Institute for the Study of Labor (IZA)

Entstanden

  • 1999

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