Employment and productivity: The role of the tax wedge
Employment and productivity: The role of the tax wedge

Summary/Abstract: After the economic crisis, many countries aim at reducing unemployment and foster productivity.To address these issues one of the most common policy indications recommends lowering the tax wedge onlabour in order to increase employment and growth. As a consequence, a review of the empirical studiesfocused on the relation between tax wedge, employment and productivity is an useful and demandingexercise, especially in those European countries where the topic is on the front page of the domestic policydebate because the productivity growth is low and the tax wedge on labour is high.

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