The interaction between the labour tax wedge and structural reforms in Italy

The tax wedge mainly quantifies the extent to which tax on labour income enervates employment and it reflects the total labour costs. It is commonly defined as the ratio between the amount of taxes paid by the worker and the related total labour costs for the employer. As such, the tax wedge affects both the labour force (unemployment) by reflecting the burden of the employer and indirectly the household disposable income. It is conferred that the alteration caused by the tax wedge on income distribution has been analysed with a small number of empirical studies. Based on the hypothesis that the tax wedge may affect income distribution from different aspects in terms of household size and income level, dynamic panel data analysis is carried out for 36 OECD member countries and the period 2000-2019. The dynamic panel analysis estimation findings for two households (single person with no children, earning 167% of the average wage, and one-earner married couple with two children, earning 100% of average wages) reveal that the tax wedge is negatively related to unfair income distribution. In addition, the aspect of the relationship is the same (negative) for the two households.

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Türki̇ye’de Yapisal Mali̇ Reformlarin Büyüme Üzeri̇ne Etki̇si̇

Şahin

Akar

2018

Mehmet Akif Ersoy Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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ÖzEtkin, verimli ve güçlü bir sosyo-ekonomik yapı için mevcut sistemin yeniden yapılandırılması olarak ifade edilebilecek yapısal reformlar günümüzde en çok tartışılan konulardan biridir. Ülkeden ülkeye farklı nedenlere göre çeşitlilik arz eden yapısal reformların başta ekonomik olmak üzere siyasi, sosyal ve mali boyutları bulunmakta ve makroekonomik değişkenler üzerinde belirleyici olmaktadır. Bu çalışmada, Türkiye'de yapısal mali reform çabalarının ekonomik büyüme üzerinde bir etki yaratıp yaratmadığı, reforma konu olan mali araçlar baz alınarak analiz edilmiştir. Belirlenen mali değişkenlerin büyüme üzerindeki etkisi regresyon analizi ile test edilmiştir. Veri seti 2006 Ocak ve 2017 Aralık dönemini kapsamaktadır. Analiz sonuçları, Türkiye'de giderlere yönelik yapılacak reformların aksine gelirlere yönelik yapılacak reformların büyümeyi hızlandıracağını göstermektedir.

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The interaction between the labour tax wedge and structural reforms in Italy

Cited by 3 publications

References 16 publications

The Italian Labor Market Reform: An Evaluation of the Jobs Act Using the Prometeia DSGE Model

The Italian Labor Market Reform: An Evaluation of the Jobs Act Using the Prometeia DSGE Model

How Tax Wedge of Low and Upper-income Households Affects Income Distribution: Findings from OECD Countries

Türki̇ye’de Yapisal Mali̇ Reformlarin Büyüme Üzeri̇ne Etki̇si̇

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