Employment and taxes in Latin America: An empirical study of the effects of payroll, corporate income and value-added taxes on labor outcomes
This paper empirically explores the effects of payroll taxes, value-added taxes and corporate income taxes on a variety of labor market outcomes such as participation, employment, informality, and wages. The results are based on nationallevel data of labor variables for 15 Latin American countries,...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universidad Nacional de Colombia
2016-01-01
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| Series: | Cuadernos de Economía |
| Subjects: | |
| Online Access: | http://www.scielo.org.co/scielo.php?script=sci_arttext&pid=S0121-47722016000100004&lng=en&tlng=en |
| _version_ | 1819182364788523008 |
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| author | Eduardo Lora Johanna Fajardo-González |
| author_facet | Eduardo Lora Johanna Fajardo-González |
| author_sort | Eduardo Lora |
| collection | DOAJ |
| description | This paper empirically explores the effects of payroll taxes, value-added taxes and corporate income taxes on a variety of labor market outcomes such as participation, employment, informality, and wages. The results are based on nationallevel data of labor variables for 15 Latin American countries, and indicate that the effects of each tax are markedly different and may depend on several aspects of labor and tax institutions. Payroll taxes reduce employment and increase labor costs when their benefits are not valued by workers, but otherwise may increase labor participation and not raise labor costs. Value-added taxes increase informality and reduce skilled labor demand. In contrast, corporate income taxes may help reduce informality, especially among low education workers, but when tax enforcement capabilities are strong they may reduce labor participation and employment of medium- and high-education workers. |
| first_indexed | 2024-12-22T22:44:58Z |
| format | Article |
| id | doaj.art-3858fd0f2ef9449d9cbaaa42f4e3634a |
| institution | Directory Open Access Journal |
| issn | 0121-4772 |
| language | English |
| last_indexed | 2024-12-22T22:44:58Z |
| publishDate | 2016-01-01 |
| publisher | Universidad Nacional de Colombia |
| record_format | Article |
| series | Cuadernos de Economía |
| spelling | doaj.art-3858fd0f2ef9449d9cbaaa42f4e3634a2022-12-21T18:10:06ZengUniversidad Nacional de ColombiaCuadernos de Economía0121-47722016-01-0135spe677511710.15446/cuad.econ.v35n67.52580S0121-47722016000100004Employment and taxes in Latin America: An empirical study of the effects of payroll, corporate income and value-added taxes on labor outcomesEduardo Lora0Johanna Fajardo-González1Harvard UniversityHarvard UniversityThis paper empirically explores the effects of payroll taxes, value-added taxes and corporate income taxes on a variety of labor market outcomes such as participation, employment, informality, and wages. The results are based on nationallevel data of labor variables for 15 Latin American countries, and indicate that the effects of each tax are markedly different and may depend on several aspects of labor and tax institutions. Payroll taxes reduce employment and increase labor costs when their benefits are not valued by workers, but otherwise may increase labor participation and not raise labor costs. Value-added taxes increase informality and reduce skilled labor demand. In contrast, corporate income taxes may help reduce informality, especially among low education workers, but when tax enforcement capabilities are strong they may reduce labor participation and employment of medium- and high-education workers.http://www.scielo.org.co/scielo.php?script=sci_arttext&pid=S0121-47722016000100004&lng=en&tlng=enimpuesto al valor agregadoimpuesto a la nóminaimpuesto a la renta de los negociosempleoinformalidadsalariosAmérica Latina |
| spellingShingle | Eduardo Lora Johanna Fajardo-González Employment and taxes in Latin America: An empirical study of the effects of payroll, corporate income and value-added taxes on labor outcomes Cuadernos de Economía impuesto al valor agregado impuesto a la nómina impuesto a la renta de los negocios empleo informalidad salarios América Latina |
| title | Employment and taxes in Latin America: An empirical study of the effects of payroll, corporate income and value-added taxes on labor outcomes |
| title_full | Employment and taxes in Latin America: An empirical study of the effects of payroll, corporate income and value-added taxes on labor outcomes |
| title_fullStr | Employment and taxes in Latin America: An empirical study of the effects of payroll, corporate income and value-added taxes on labor outcomes |
| title_full_unstemmed | Employment and taxes in Latin America: An empirical study of the effects of payroll, corporate income and value-added taxes on labor outcomes |
| title_short | Employment and taxes in Latin America: An empirical study of the effects of payroll, corporate income and value-added taxes on labor outcomes |
| title_sort | employment and taxes in latin america an empirical study of the effects of payroll corporate income and value added taxes on labor outcomes |
| topic | impuesto al valor agregado impuesto a la nómina impuesto a la renta de los negocios empleo informalidad salarios América Latina |
| url | http://www.scielo.org.co/scielo.php?script=sci_arttext&pid=S0121-47722016000100004&lng=en&tlng=en |
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