Labor Tax Cuts and Employment : A General Equilibrium Approach for France /

The paper presents a simple supply side, general equilibrium model to estimate the macroeconomic effects of labor tax cuts. The model assumes that output is produced using capital, unskilled and skilled workers, and public servants. Wage formation for skilled workers features a Blanchflower-Oswald w...

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Библиографические подробности
Главный автор: Espinoza, Raphael
Другие авторы: Perez Ruiz, Esther
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 2014.
Серии:IMF Working Papers; Working Paper ; No. 2014/114
Online-ссылка:Full text available on IMF
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100 1 |a Espinoza, Raphael. 
245 1 0 |a Labor Tax Cuts and Employment :   |b A General Equilibrium Approach for France /  |c Raphael Espinoza, Esther Perez Ruiz. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2014. 
300 |a 1 online resource (37 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a The paper presents a simple supply side, general equilibrium model to estimate the macroeconomic effects of labor tax cuts. The model assumes that output is produced using capital, unskilled and skilled workers, and public servants. Wage formation for skilled workers features a Blanchflower-Oswald wage curve, while the labor supply for unskilled workers is very elastic around the minimum wage for small changes in employment. The model is calibrated for France and used to estimate the output and employment effects induced by two recent tax reforms: the Credit d'Impot pour la Competitivite et l'Emploi (CICE) and the Pacte de Solidarite Responsabilite (RSP). We find that the tax cuts, if not offset by other fiscal measures, would contribute overall to creating around 200,000 jobs in the short run (600,000 jobs in the long run). Since the model abstracts from demand side effects, the results should be interpreted as providing estimates of the effect of tax measures on potential output and potential employment. 
538 |a Mode of access: Internet 
700 1 |a Perez Ruiz, Esther. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2014/114 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2014/114/001.2014.issue-114-en.xml  |z IMF e-Library