How much employment can be generated by decreasing payroll taxes? We examine this question by exploring the staggered rollout of a large payroll tax reform in Brazil. Using administrative matched employer-employee data, we find an increase of 5 percent on employment due to both firm growth and...

Tax-benefit systems in Latin America have expanded alongside social protection, yet persistently high informality continues to constrain fiscal capacity and redistribution. This paper examines how tax policy changes affect formal employment in Bolivia, Colombia, and Ecuador over three periods...

This paper studies the labor market effects of a large payroll tax cut for female hires in Italy. Starting in January 2013, the payroll tax rate paid by the employer for female hires was reduced by 50 percent for a period of 12 months for temporary jobs and 18 months for permanent jobs....

This report presents results on a review of data available to the State Revenue Committee for estimating the Personal Income Tax and Social Security Contribution gaps. It is concluded that SRC has sufficient quality data available from operational audits to assess the gaps

Die Studie untersucht den Beitrag der unterschiedlichen Einkommensarten, insbesondere der Einkommen aus unselbständiger Beschäftigung zur Finanzierung der öffentlichen Haushalte im Jahr 2019. Neben dem typischerweise dargestellten Aufkommen aus direkten Abgaben (Sozialbeiträge und...

In this paper, I investigate how individuals perceive the implicit contribution incentives provided by public pension systems. I use the unique setting of the Spanish public pension system, where self-employed workers are allowed to voluntarily determine the level of their Social Security...

This paper studies the cost-effectiveness of targeted payroll taxes for stimulating labor demand. It uses rich administrative data to study the effects of an Italian reform that raised social security contributions for apprenticeship contracts but granted a substantial discount for firms with 9...

This paper documents sharp bunching in third-party reported employment earnings at a basic exemption for social security contributions among older workers. Beginning in 2012, workers age 60-64 who were receiving a public pension were required to make social security contributions equal to 9.9...

This paper documents sharp bunching in third-party reported employment earnings at a basic exemption for social security contributions among older workers. Beginning in 2012, workers age 60-64 who were receiving a public pension were required to make social security contributions equal to 9.9...

This report presents estimates of the Personal Income Tax (PIT) and Social Security Contributions tax gaps for Armenia for 2020-2023. The tax gaps are based on a bottom-up approach using operational audits. The PIT gap is estimated at 3.8 percent of potential PIT liability

How much employment can be generated by decreasing payroll taxes? We examine this question by exploring the staggered rollout of a large payroll tax reform in Brazil. Using administrative matched employer-employee data, we find an increase of 5 percent on employment due to both firm growth and...

This paper introduces a novel framework for designing fair and sustainable unemployment benefits, grounded in cooperative game theory and real-time fiscal policy. The labor market is modeled as a coalitional game, where a random subset of participants is employed, generating stochastic economic...

This paper studies the labor market effects of a large employer-borne payroll tax cut for unemployed women, introduced in Italy since 2013. I combine social security data with several empirical approaches, leveraging the time-limited application of the tax scheme and discontinuities in...

This report presents the findings from an experimental estimation of the personal income tax (PIT) and social security contributions (SSC) compliance gaps for Austria (years 2009, 2014, 2019) and Poland (years 2016-2021). The methodology used was developed during Phase I of this study, which...

This paper examines how the economic growth in advanced countries is affected by various types of tax revenue. Ten developed countries were chosen based on the Human Development Index, and data from 1995 to 2020 were examined using the feasible generalized least squares method. A total of 260...

Demographic change is putting pressure on the sustainability of State Pension systems in many developed countries. In Ireland, there have been recent calls to reform the system of contributions and/or increase the State Pension age in order to avoid significant shortfalls in the Social Insurance...

This paper uses administrative employer-employee data to uncover the effects of a large payroll tax reduction for minimum-wage workers in France. Exploiting the change in labor costs both at the job level and at the firm level, I find that the policy spurred an additional 13 percentage points...

Guarantee of autonomy and stability of economic subjects from the government can be consid- ered an important gauge of state security. Due to the financial, migration and energy crisis, we can observe a notable increase of social problems, which gives more importance to the policy for social...

Many countries subsidize low-income employments or small jobs. These subsidies and their phasing out can generate labor market frictions and distort incentives. The German Minijob program subsidizes low-income jobs. It generates a 'Minijob trap' with substantial bunching along the earnings...

Minijobs are subsidized small jobs below a fixed earnings threshold. Since a reform in 2003, they are viewed as stepping stones to the first labor market. However, the Minijob subsidy generates a 'Minijob trap' that causes vast bunching at the Minijob earnings threshold. Therefore, Midijobs were...

Many countries subsidize low-income employments or small jobs. These subsidies and their phasing out can generate labor market frictions and distort incentives. The German Minijob program subsidizes low-income jobs. It generates a "Minijob trap" with substantial bunching along the earnings...

How costly are taxes for young firms? In this paper, we demonstrate that even small payroll taxes significantly distort entry, growth, and hiring decisions. First, leveraging cross-sectional variation in the taxes faced by new employers, we find that higher taxes discourage new firms from hiring...

This paper studies tax evasion and the contribution-benefit link in the context of maternity benefits in Hungary. Earnings and employment patterns suggest pre-pregnancy underreporting, followed by formalization of some earnings and employment during pregnancy to increase benefits. Reported...

Despite unambiguous predictions of the canonical model of a competitive labor market, empirical studies on the labor market effects of payroll taxation provide conflicting evidence. Our meta-analysis shows that varying degrees of labor market competitiveness across places and time could be one...

It is commonly argued that payroll tax cuts are inefficient for increasing employment among outsiders because insiders will use their power to bargain for higher wages at the expense of outsiders’ possibility of becoming employed. The extent to which insiders or outsiders reap the rewards of...

Over the 1967-2015 period, net wage inequality has decreased in France by 25%, in contrast to the significant increase experienced by most developed countries. Less well known is the fact that labor cost inequality has actually increased by 8% over the same period. We show that, (a) standard...