Social Security Tax Reform and Unemployment A General Equilibrium Analysis for France

This paper develops and calibrates a simple general equilibrium model with two types of labor and capital for the French economy. The simulation results indicate that targeted reductions in employer social security taxes have six times as large an effect on employment as untargeted reductions for eq...

Full description

Bibliographic Details
Corporate Author: International Monetary Fund
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1997
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
LEADER 02657nmm a2200589 u 4500
001 EB000929966
003 EBX01000000000000000723562
005 00000000000000.0
007 cr|||||||||||||||||||||
008 150128 ||| eng
020 |a 9781451966008 
245 0 0 |a Social Security Tax Reform and Unemployment  |b A General Equilibrium Analysis for France 
260 |a Washington, D.C.  |b International Monetary Fund  |c 1997 
300 |a 29 pages 
651 4 |a France 
653 |a Optimal Taxation 
653 |a Social security 
653 |a Labour; income economics 
653 |a Employment; Economic theory 
653 |a Public finance & taxation 
653 |a Taxes 
653 |a Wages, Compensation, and Labor Costs: General 
653 |a Mobility, Unemployment, and Vacancies: Public Policy 
653 |a Unemployment: Models, Duration, Incidence, and Job Search 
653 |a Fiscal Policy 
653 |a Aggregate Labor Productivity 
653 |a Unemployment 
653 |a Aggregate Human Capital 
653 |a Welfare & benefit systems 
653 |a Labor 
653 |a Taxation, Subsidies, and Revenue: General 
653 |a Wages, Compensation, and Labor Costs: Public Policy 
653 |a Labor Economics: General 
653 |a Efficiency 
653 |a Income tax systems 
653 |a Macroeconomics 
653 |a Wages 
653 |a Intergenerational Income Distribution 
653 |a Taxation 
653 |a Personal Income and Other Nonbusiness Taxes and Subsidies 
653 |a Income tax 
653 |a Employment 
653 |a Labor economics 
653 |a Social security contributions 
710 2 |a International Monetary Fund 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
028 5 0 |a 10.5089/9781451966008.001 
856 4 0 |u https://elibrary.imf.org/view/journals/001/1997/059/001.1997.issue-059-en.xml?cid=2224-com-dsp-marc  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a This paper develops and calibrates a simple general equilibrium model with two types of labor and capital for the French economy. The simulation results indicate that targeted reductions in employer social security taxes have six times as large an effect on employment as untargeted reductions for equal initial budgetary cost, while employee social security tax reductions have a negative effect on employment. They also point to the presence of “self-financing,” whereby reductions in various tax rates lead to lower budget deficits in the long run, as a result of an expanding tax base and lower unemployment insurance outlays.1