Arbeitspapier

Do payroll tax cuts raise youth employment?

In 2007, the Swedish employer-paid payroll tax was cut on a large scale for young workers, substantially reducing labor costs for this group. We estimate a small impact, both on employment and on wages, implying a labor demand elasticity for young workers at around -0.31. Since the tax reduction applied also to excisting employments, the cost of the reform was sizable, and the estimated cost per created job is at more than four times that of directly hiring workers at the average wage. Hence, we conclude that payroll tax cuts are an inefficient way to boost employment for young individuals.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2013:27

Klassifikation
Wirtschaft
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
Labor Demand
Wages, Compensation, and Labor Costs: Public Policy
Mobility, Unemployment, and Vacancies: Public Policy
Thema
Youth unemployment
Payroll tax
Tax subsidy
Labor costs
Exact matching

Ereignis
Geistige Schöpfung
(wer)
Egebark, Johan
Kaunitz, Niklas
Ereignis
Veröffentlichung
(wer)
Institute for Evaluation of Labour Market and Education Policy (IFAU)
(wo)
Uppsala
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Egebark, Johan
  • Kaunitz, Niklas
  • Institute for Evaluation of Labour Market and Education Policy (IFAU)

Entstanden

  • 2013

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