Planas, Christophe; Roeger, Werner; Rossi, Alessandro - EconWPA - 2004
This paper analyses the effect of labour taxes on Euro area unemployment. Empirical estimates obtained so far can be … that can possibly be non stationary. Here we overcome this problem by using an unobserved component model. For the Euro … area unemployment, we find a significant tax effect that is in the middle of the estimates that can be found in the …