Cutting the labor tax wedge in hard times evidence from an Italian reform Massimo Bordignon, Marie - Luise Schmitz and Gilberto Turati
By: Bordignon, Massimo
.
Contributor(s): Schmitz, Marie Luise | Turati, Gilberto.
Material type: 
ArticlePublisher: 2019Subject(s): REDUCCIONES TRIBUTARIAS | SALARIOS | IMPUESTOS | ITALIA | MODELOS ECONOMETRICOS
In:
FinanzArchiv v. 75, n. 3, September 2019, p. 266-296Summary: 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.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 207/2019/3-3 (Browse shelf) | Available | OP 207/2019/3-3 |
Browsing IEF Shelves Close shelf browser
| No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
| OP 207/2019/3 FinanzArchiv | OP 207/2019/3-1 Fiscal reaction functions across the world | OP 207/2019/3-2 The role of taxes in earnings management | OP 207/2019/3-3 Cutting the labor tax wedge in hard times | OP 207/2019/3-4 Refugee immigration and public - sector finances | OP 207/2019/4 FinanzArchiv | OP 207/2019/4-1 Are excise taxes on beverages fully passed through to prices? |
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.
Click on an image to view it in the image viewer
There are no comments for this item.