This paper studies the impact of a large payroll tax cut for older workers in Hungary. Motivated by the predictions of a standard equilibrium job search model, the paper examines the heterogeneous impact of the policy. Employment increases most at low-productivity firms offering low-wage jobs, which...

Ausführliche Beschreibung

Bibliographische Detailangaben

1. Verfasser:	Biro, Aniko (VerfasserIn)
Format:	Elektronisch E-Book
Sprache:	English
Veröffentlicht:	Washington, D.C The World Bank 2022
Schlagworte:	Employment and Unemployment Employment of Older Workers Firm Hetrogeneity Labor and Employment Law Labor Market Law and Development Macroeconomics and Economic Growth Older Workers Payroll Tax Social Protections and Labor Tax Incidence Tax Law Taxation and Subsidies Unemployment
Online-Zugang:	Volltext
Zusammenfassung:	This paper studies the impact of a large payroll tax cut for older workers in Hungary. Motivated by the predictions of a standard equilibrium job search model, the paper examines the heterogeneous impact of the policy. Employment increases most at low-productivity firms offering low-wage jobs, which tend to hire from unemployment, while the effects are more muted for high-productivity firms offering high-wage jobs. At the same time, wages only increase at high-productivity firms. These results point to important heterogeneity in the incidence of payroll tax cuts across firms and highlight that payroll taxes have a significant impact on the composition of jobs in the labor market
Beschreibung:	1 Online-Ressource (108 Seiten)
DOI:	10.1596/1813-9450-10265