English, Article, Journal or magazine article edition: Labour Taxes and Unemployment Evidence from a Panel Unobserved Component Model T. BERGER; G. EVERAERT

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Bookmark: http://trove.nla.gov.au/version/14687
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Labour Taxes and Unemployment Evidence from a Panel Unobserved Component Model
Author
  • T. BERGER
  • G. EVERAERT
Physical Description
  • preprint
Notes
  • This paper estimates the impact of labour taxes on unemployment using a panel of yearly observations (1970-2001) for 16 OECD countries. Possible heterogeneity of the unemployment incidence of taxes is taken into account by grouping countries according to their wage-setting institutions. Panel data unit root and cointegration tests show that unemployment and labour tax rates are non-stationary but not cointegrated. As this finding may be induced by missing non-stationary variables we set up a panel unobserved component model. Labour taxes are found to have a positive impact on unemployment only in countries characterised by strong but decentralised unions.
  • RePEc:rug:rugwps:07/​478
Language
  • English
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