@TechReport{iza:izadps:dp55,
            	author={Goerke, Laszlo},
            	title={Value-added Tax versus Social Security Contributions},
            	year={1999},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={55},
            	url={https://www.iza.org/publications/dp55},
	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.},
	keywords={Efficiency wages;social security contributions;unemployment;value-added tax},
            }