Bordignon, Massimo
Cutting the labor tax wedge in hard times evidence from an Italian reform /Massimo Bordignon, Marie - Luise Schmitz and Gilberto Turati .-- , 2019
Resumen.
Bibliografía.
As the first step of a strategy aimed at implementing a fiscal devaluation, in 2007, the Italian government implemented a reform reducing the labor tax wedge to boost firms' competitiveness. In this paper, we provide evidence on the causal impact on employment of this reform by estimating a DDD model that exploits differences across geographical areas and sectors of economic activity in the tax allowances. We find mildly positive effects of the reform on employment. We interpret this result by observing that the magnitude of the tax incentive was too small for firms to substantially increase the number of workers.
REDUCCIONES TRIBUTARIAS
SALARIOS
IMPUESTOS
ITALIA
MODELOS ECONOMETRICOS
Schmitz, Marie Luise
Turati, Gilberto
FinanzArchiv 0015-2218 v. 75, n. 3, September 2019, p. 266-296
Cutting the labor tax wedge in hard times evidence from an Italian reform /Massimo Bordignon, Marie - Luise Schmitz and Gilberto Turati .-- , 2019
Resumen.
Bibliografía.
As the first step of a strategy aimed at implementing a fiscal devaluation, in 2007, the Italian government implemented a reform reducing the labor tax wedge to boost firms' competitiveness. In this paper, we provide evidence on the causal impact on employment of this reform by estimating a DDD model that exploits differences across geographical areas and sectors of economic activity in the tax allowances. We find mildly positive effects of the reform on employment. We interpret this result by observing that the magnitude of the tax incentive was too small for firms to substantially increase the number of workers.
REDUCCIONES TRIBUTARIAS
SALARIOS
IMPUESTOS
ITALIA
MODELOS ECONOMETRICOS
Schmitz, Marie Luise
Turati, Gilberto
FinanzArchiv 0015-2218 v. 75, n. 3, September 2019, p. 266-296