Employment Effects of Payroll Taxes - An Empirical Test for Germany

Arbeitspapier

This study tests to what degree the incidence of payroll taxes in Germany is on employment and whether in consequence payroll taxes, in particular social insurance contributions, are the culprit behind the growing unemployment problem. Using industry level data for 18 years (1977-1994) we estimate a system of five interdependent, dynamic factor demand equations. Various simulations indicate that the employment effects of payroll taxes are minimal.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 11

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policies and Behavior of Economic Agents: Firm ; Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions ; Labor Demand
• Subject: dynamic labor demand ; payroll tax ; unemployment ; social insurance ; Lohnsummensteuer ; Personalzusatzkosten ; Steuerwirkung ; Arbeitsnachfrage ; Schätzung ; Beschäftigungseffekt ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Riphahn, Regina T. ; Bauer, Thomas K.
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 1998

Further information

• Handle: http://hdl.handle.net/10419/20856
• Last update: 10.03.2025, 11:44 AM CET