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Mezní efektivní daňové sazby zaměstnanců na českém a slovenském pracovním trhu v období transformace
[Marginal effective tax rates on employees on czech and slovak labour market in the period of transformation]

Author

Listed:
  • Jan Pavel
  • Leoš Vítek

Abstract

During the transition of the central planned economies to the market system unemployment has become one of the most serious problems. The article describes the current state of unemployment in the Czech Republic and Slovakia. Using models of marginal effective tax rates developed by the OECD we discuss the influence of wage taxation, social security contributions and the benefit system on taxpayers' incomes and therefore on the motivation to work. The first part describes alternative indicators for measuring taxation of labor, analyses the methodology of measuring marginal effective tax rates and shows the calculated results. The next part discuses the influence of these effective tax rates and benefit systems on the taxpayers' net incomes and analyses possibilities of poverty traps for households, especially for low-wage taxpayers. The results show that efforts to reduce poverty hardly reduced work incentives in the Czech Republic and Slovakia.

Suggested Citation

  • Jan Pavel & Leoš Vítek, 2005. "Mezní efektivní daňové sazby zaměstnanců na českém a slovenském pracovním trhu v období transformace [Marginal effective tax rates on employees on czech and slovak labour market in the period of tr," Politická ekonomie, Prague University of Economics and Business, vol. 2005(4), pages 477-494.
    • Handle: RePEc:prg:jnlpol:v:2005:y:2005:i:4:id:518:p:477-494
    DOI: 10.18267/j.polek.518
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    References listed on IDEAS

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    1. Edward C. Prescott, 2004. "Why do Americans work so much more than Europeans?," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 28(Jul), pages 2-13.
    2. Immervoll, Herwig, 2002. "The distribution of average and marginal effective tax rates in European Union Member States," EUROMOD Working Papers EM2/02, EUROMOD at the Institute for Social and Economic Research.
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    Cited by:

    1. Jarmila Zimmermannová & Michal Menšík, 2013. "Ex post analýza zavedení zdanění pevných paliv, zemního plynu a elektřiny [Ex-Post Analysis of Solid Fuels, Natural Gas and Electricity Taxation Introduction]," Politická ekonomie, Prague University of Economics and Business, vol. 2013(1), pages 46-66.

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    More about this item

    Keywords

    transition economies; Czech Republic; wage taxation; benefit system; poverty trap; Slovak Republic;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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