INTERACTIONS BETWEEN LABOR INCOME TAXATION AND EMPLOYMENT IN THE CONTEXT OF ECONOMIC DEVELOPMENT: THE CASE OF ARMENIA
INTERACTIONS BETWEEN LABOR INCOME TAXATION AND EMPLOYMENT IN THE CONTEXT OF ECONOMIC DEVELOPMENT: THE CASE OF ARMENIA

Summary/Abstract: The purpose of this paper is to study trends in the labor market and employment dynamics in the context of the inclusive development of the economy of the Republic of Armenia, and to identify the nature and main features of the primary factors determining them, including: taxation of labor income, investments, and the impact of labor productivity. According to the results of this research, the impact of labor income taxation on employment in the Armenian labor market is restraining increases in labor productivity, contributes to the reduction of the percentage of the labor force involved in the economy, and increases unemployment. Conversely, the acceleration of growth rates of gross fixed capital formation has a positive impact on employment.

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