The Tax System as the Determinant of Institutional Unemployment in the OECD Countries

Magdalena Knapińska , Edyta Małecka-Ziembińska

Abstract

Unemployment is a macroeconomic problem occurring in all market economies in the OECD countries. It is a phenomenon of surplus labor supply over demand for it. Economists point to a variety of reasons why this occurs, one of the concept indicated the existence of institutional unemployment. This type of unemployment is determined by the formal institutions of legal, economic and social. The aim of the study is to answer the question of how the tax system, its components, the nature and amount of the tax burden determine the incidence of unemployment in the economy. Content of the study consists of two parts: theoretical and empirical, which were divided into five points. The first part defines the phenomenon of unemployment and its types and determinants. The second part focuses on the presentation of institutional unemployment and its causes: wage bargaining, tax systems, system of social benefits. We also present the level of unemployment rate in particular OECD’s countries. In Section 3, we present and analyze the trends in tax structure in the OECD area in 1965–2014. We compare as well percentage share of major tax categories in total tax revenue and tax rates (percentage share of total tax revenue in GDP) in OECD countries in 2015. Section 4 offers proposes a cross-country comparison of unemployment rates and tax structures. We use k-means method. Complete technical details about our methodology are gathered in this section. Section 5 focuses on concluding comments and proposes an international comparison.
Author Magdalena Knapińska (WE / KMiBR)
Magdalena Knapińska,,
- KMiBR
, Edyta Małecka-Ziembińska (WE / KFP)
Edyta Małecka-Ziembińska,,
- Department of Public Finance
Pages1-19
Publication size in sheets0.9
Book Proceedings of the American Academic Research Conference on Global Business, Economics, Finance and Business Management (AAR17Las Vegas Conference), 2017, Global Business Research Journals, ISBN 978-1-943579-91-4, 118 p.
Keywords in Englishunemployment, direct taxes, indirect taxes, tax mix, k-means algorithm
URL http://globalbizresearch.org/Las_Vegas_Conference1/docs/doc/L717.pdf
Languageen angielski
Score (nominal)5
Score sourcepublisherList
ScoreMinisterial score = 5.0, 23-03-2020, ChapterFromConference
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