IDEAS home Printed from https://ideas.repec.org/a/jns/jbstat/v219y1999i3-4p308-325.html
   My bibliography  Save this article

Value-added Tax versus Social Security Contributions / Mehrwertsteuer oder Sozialversicherungsabgaben

Author

Listed:
  • Goerke Laszlo

    (Universität Konstanz, Fakultät für Wirtschaftswissenschaften und Statistik, Fach D 138, D-78457 Konstanz)

Abstract

In order to alleviate unemployment it is often recommended to reduce social security contributions (SSC) and to compensate for the ensuing loss in revenues by a rise in the value-added tax (VAT). Assuming unemployment to be caused by efficiency wages, it is shown that a balanced-budget shift from a payroll tax to a VAT will increase employment if the rise in the VAT does not alter consumer prices. If the effects of a shift from SSC to the VAT on the worker’s effort are neutralised, for example, by imposing a constant wedge, the employment impact will depend on the nature of the unemployment compensation system.

Suggested Citation

  • Goerke Laszlo, 1999. "Value-added Tax versus Social Security Contributions / Mehrwertsteuer oder Sozialversicherungsabgaben," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 219(3-4), pages 308-325, June.
    • Handle: RePEc:jns:jbstat:v:219:y:1999:i:3-4:p:308-325
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/jbnst.1999.219.issue-3-4/jbnst-1999-3-406/jbnst-1999-3-406.xml?format=INT
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laszlo Goerke, 2000. "The Wedge," Manchester School, University of Manchester, vol. 68(5), pages 608-623, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:219:y:1999:i:3-4:p:308-325. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.