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
There are 2 versions of this paper
Social Security Tax Reform and Unemployment: A General Equilibrium Analysis for France
IMF Working Paper No. 97/59
Number of pages: 29
Posted: 15 Feb 2006
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105
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: 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
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