GTAP Resources: Resource Display
| GTAP Resource #2586 |
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"Reducing social contributions for unskilled labor as a way of fighting unemployment: an empirical evaluation for the case of Spain" by Bajo-Rubio, Oscar and Antonio Gomez-Plana Abstract We provide an empirical evaluation of the effects of a cut in social security contributions (i) for all types of labor and (ii) only for unskilled labor, within a computable generalequilibrium model simulation of the Spanish economy. The model allows firms to follow a noncompetitive price rule, and incorporates an equal-yield assumption, which means that the reduction in social security contributions is compensated with an increase in value-added tax rates, so the public-sector deficit is not affected. In addition, the labor market is assumed to follow a matching unemployment rule, which allows us to model in a simple way any frictions present in that market. |
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- Labor market issues - Calibration and parameter estimation - Europe (Southern) - European Union |
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Last Modified: 9/15/2023 2:05:45 PM
