TY  - RPRT
        AU  - Goerke, Laszlo
        TI  - Value-added Tax versus Social Security Contributions
        PY  - 1999/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 55
        UR  - https://www.iza.org/publications/dp55
        AB  - 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.
        KW  - Efficiency wages
KW  - social security contributions
KW  - unemployment
KW  - value-added tax
        ER  -