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

IMF Working Paper No. A1.64 WP 97/59

Posted: 15 Jun 1998

Multiple version iconThere are 2 versions of this paper

Date Written: 1997

Abstract

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 reduction in employer social security taxes, financed by a broad-based income tax, have six times as large an effect on unemployment as untargeted reductions, while employee social security tax reductions financed by a broad-based income tax have a negative effect on employment.

JEL Classification: E62, H21, J38, J68

Suggested Citation

Van Rijckeghem, Caroline, Social Security Tax Reform and Unemployment: A General Equilibrium Analysis for France (1997). IMF Working Paper No. A1.64 WP 97/59, Available at SSRN: https://ssrn.com/abstract=93328

Caroline Van Rijckeghem (Contact Author)

Istanbul Analytics ( email )

Istanbul
Turkey

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