Fiche du document
1 mai 2012
- handle: 10670/1.3yaq55
Ce document est lié à :
10.4067/S0719-04332012000100004
info:eu-repo/semantics/openAccess
Sujets proches
Duties Fee system (Taxation) Taxation, Incidence of Tax reform Tax policy TaxesCiter ce document
Gustavo Hernández, « PAYROLL TAXES AND THE LABOR MARKET: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS », Latin American Journal of Economics, ID : 10670/1.3yaq55
Métriques
Partage / Export
Résumé
This study uses a computable general equilibrium model to analyze the effects of eliminating Colombia's parafiscal taxes, which finance social programs. In the model, these are substituted by alternative financing sources: VAT, indirect taxes or taxes on capital. The results show that elimination of parafiscal taxes produces a one percentage point decrease in the unemployment rate, as long as these are not substituted by other taxes. However, when other taxes are substituted for parafiscal taxes, there may not be any effect on the unemployment rate. This implies that eliminating parafiscal taxes does not produce the effects expected by a partial equilibrium analysis, that is, a significant reduction in the unemployment rate.