Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162355
Authors: 
Pagés, Carmen
Year of Publication: 
2017
Citation: 
[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2017 [Issue:] 345
Abstract: 
Informal employment accounts for more than half of total employment in Latin America and the Caribbean, and an even higher percentage in Africa and South Asia. It is associated with lack of social insurance, low tax collection, and low productivity jobs. Lowering payroll taxes is a potential lever to increase formal employment and extend social insurance coverage among the labor force. However, the effects of tax cuts vary across countries, often resulting in large wage shifts but relatively small employment effects. Cutting payroll taxes requires levying other taxes to compensate for lost revenue, which may be difficult in developing economies.
Subjects: 
payroll taxes
formal employment
wage shifts
developing countries
JEL: 
H20
J46
O17
Persistent Identifier of the first edition: 
Document Type: 
Article

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