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
Englisch

Bibliographic citation
Series: Kiel Working Paper ; No. 985

Classification
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Subject
Unemployment
labour market institutions
taxation
Arbeitslosigkeit
Arbeitsmarkt
Steuerwirkung
OECD-Staaten

Event
Geistige Schöpfung
(who)
Heitger, Bernhard
Event
Veröffentlichung
(who)
Kiel Institute of World Economics (IfW)
(where)
Kiel
(when)
2000

Handle
Last update
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

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