Arbeitspapier
Unemployment and labour market rigidities in OECD countries: the impact of taxes
This paper investigates unemployment and labour market rigidities in OECD countries in 1983?1994. The central issue is the taxation-unemployment relationship and whether this relationship is exogenous or simultaneously determined. Hausman specification tests indicate that the impact of taxation on short-term unemployment is positive and exogenous whereas the relationship between taxation and long-term unemployment is simultaneously determined. Correcting for this simultaneity results in a much higher, significant and positive regression coefficient for the impact of taxation. Thus, high taxation seems to be one of the main determinants of long-term unemployment.
- Language
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Englisch
- Bibliographic citation
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Series: Kiel Working Paper ; No. 985
- Classification
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Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- Subject
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Unemployment
labour market institutions
taxation
Arbeitslosigkeit
Arbeitsmarkt
Steuerwirkung
OECD-Staaten
- Event
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Geistige Schöpfung
- (who)
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Heitger, Bernhard
- Event
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Veröffentlichung
- (who)
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Kiel Institute of World Economics (IfW)
- (where)
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Kiel
- (when)
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2000
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Heitger, Bernhard
- Kiel Institute of World Economics (IfW)
Time of origin
- 2000