“…where y is the employment, unemployment, and participation rates, respectively, in time t and country i. j stands for the specific subsample of the population (50+). SH is a dummy variable equal to one if an upward change in labor taxes has been implemented and is observed in year t, country i, and subsample j. α and ɣ are, respectively, a time invariant country fixed effect and a time dummy, which accounts for the time effect common to all 34 Daveri, F., Tabellini, G. (2000), Vork, A. et al (2007), Cristescu, A. et al (2016) 35 Dolenc, P., Laporsek S. (2010) 36 European Commission (2011)…”