English, Article, Journal or magazine article edition: Is the Impact of Labour Taxes on Unemployment asymmetric? T. BERGER; G. EVERAERT

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Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Is the Impact of Labour Taxes on Unemployment asymmetric?
Author
  • T. BERGER
  • G. EVERAERT
Physical Description
  • preprint
Notes
  • This paper tests whether the impact of labour taxes on unemployment is symmetric with respect to increases and decreases in labour taxes. Using a panel of 16 OECD countries over the period 1970-2005, we estimate a panel unobserved component model to account for the fact that unemployment rates and labour taxes are non-stationary but not co integrated. We find a positive impact of tax increases in European and Nordic countries but no effect of decreasing labour taxes on the rate of unemployment. For Anglo-Saxon countries, no impact of labour taxes on unemployment is found.
  • unemployment, labour taxes, asymmetry, unobserved component model
  • RePEc:rug:rugwps:08/​523
Language
  • English
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