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Tax Rates and Corruption: Labour-market and Fiscal Effects. Empirical cross-country comparisons on OECD and transition countries

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  • Mária Lackó

Abstract

The paper attempts to explain how tax rates, the extent of corruption and various institutional aspects of the labour market influence the relative size of different segments (unemployment, employment, self-employment and activity in the hidden economy) of the labour market as well as the tax revenues in both developed market economies and transition countries. Based on theoretical assumptions and methodological considerations, alternative regression calculations are carried out on data for 28 OECD countries and partly on 18 transition countries for the period 1995 to 2000. A methodological novelty of the investigation is the establishment and testing of a new variable, the subjective tax rate.

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  • Mária Lackó, 2004. "Tax Rates and Corruption: Labour-market and Fiscal Effects. Empirical cross-country comparisons on OECD and transition countries," wiiw Research Reports 309, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:rpaper:rr:309
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    Cited by:

    1. Lackó, Mária, 2006. "Az adóráták és a korrupció hatásai a munkapiacra. Keresztmetszeti összehasonlító elemzés az OECD-országokon [The effects of tax rates and corruption on the labour market. A cross-sectional comparat," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 961-985.

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    More about this item

    Keywords

    taxation; corruption; labour market; hidden economy;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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