@techreport{Goerke1999Value,
abstract = {In order to alleviate unemployment it is often recommended to reduce social security
contributions (SSC) and to compensate for the ensuing loss in revenues by a rise in the
value-added tax (VAT). Assuming unemployment to be caused by efficiency wages, it is
shown that a balanced-budget shift from a payroll tax to a VAT will increase employment if
the rise in the VAT does not alter consumer prices. If the effects of a shift from SSC to the
VAT on the worker's effort are neutralised, for example, by imposing a constant wedge, the
employment impact will depend on the nature of the unemployment compensation system.},
author = {Laszlo Goerke},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H25; J41; J32; H24; 330; Efficiency wages; social security contributions; unemployment; value-added tax; Besch\"{a}ftigungspolitik; Sozialversicherungsbeitrag; Umsatzsteuer; Personalzusatzkosten; Effizienzlohn; Arbeitslosigkeit; Besch\"{a}ftigungseffekt; Theorie},
language = {eng},
number = {55},
title = {Value-added Tax versus Social Security Contributions},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/20891},
year = {1999}
}
