English, Article, Journal or magazine article edition: Imposto sobre Trabalho e seu Impacto nos Setores Formal e Informal Gabriel Ulyssea; Maurício Cortez Reis

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Bookmark: http://trove.nla.gov.au/version/2347
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Imposto sobre Trabalho e seu Impacto nos Setores Formal e Informal
Author
  • Gabriel Ulyssea
  • Maurício Cortez Reis
Physical Description
  • preprint
Notes
  • This paper aims to analyze the effects of payroll taxes on the Brazilian labor market. For that purpose, we develop a model of two sectors (formal and informal) and two types of workers. The demand for labor is determined by workers? productivity while the supply side is represented by wage curves, which are specific to each sector and qualification group. The parameters of the model are estimated using the data from Pnad 1992-2003. The simulation results show that reducing payroll taxes leads to a significant drop in the informality rate and increases both employment level and earnings.
  • RePEc:ipe:ipetds:1218
Language
  • English
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