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
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