Tax Wedges, Unemployment Benefits and Labour Market Outcomes in the New EU Members

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Title:Tax Wedges, Unemployment Benefits and Labour Market Outcomes in the New EU Members
Creators:
Behar, Alberto
Journal or Publication Title:
AUCO Czech Economic Review, 3, 1, 069-93
Uncontrolled Keywords:Labour market institutions, principal component analysis

Abstract

There has been a widely accepted belief that certain labor market institutions, including high taxation and generous benefits, can lead to low employment and/or high unemployment. To what extent do such priors about tax wedges and unemployment benefits apply to the new members of the EU? Principal Component Analysis (PCA) suggests the new members share similar characteristics to each other and should be grouped separately from the rest of Europe. There are statistically significant differences in the medians of unemployment benefits and the labor market outcomes of the less productive workers, but insignificant differences in primeage outcomes and tax wedges. Within the new members, our non-parametric analysis finds tax wedges and the duration of benefits (not the replacement ratio) are associated with poor labor market outcomes, but the evidence is weak.

Official URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=AB75E7B0-2069-4446-AD02-CF2F5370B632&articleid=7F258893-BB12-46A6-8969-9F6A3549286B

Title:Tax Wedges, Unemployment Benefits and Labour Market Outcomes in the New EU Members
Creators:
Behar, Alberto
Uncontrolled Keywords:Labour market institutions, principal component analysis
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HF Commerce
Divisions:Section of external journals > AUCO Czech Economic Review
Journal or Publication Title:AUCO Czech Economic Review
Volume:3
Number:1
Page Range:069-93
ISSN:1802-4696
Publisher:Charles University
Related URLs:
URLURL Type
http://auco.cuni.czPublisher
http://avi.lib.cas.cz/node/183Publisher
ID Code:4331
Item Type:Article
Deposited On:01 Jun 2009 18:33
Last Modified:01 Jun 2009 16:33

Citation

Behar, Alberto (2009) Tax Wedges, Unemployment Benefits and Labour Market Outcomes in the New EU Members. AUCO Czech Economic Review, 3 (1). 069-93. ISSN 1802-4696

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