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On the Equivalence of Taxes Paid by Employers and Employees
Author(s) -
Picard Pierre,
Toulemonde Eric
Publication year - 2001
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/1467-9485.00209
Subject(s) - restructuring , equivalence (formal languages) , wage , economics , labour economics , tax deferral , microeconomics , public economics , tax reform , finance , gross income , state income tax , linguistics , philosophy
In this paper we study the employment effects of a budget neutral restructuring of taxes levied on employers and employees. We derive conditions for taxes levied on workers to have the same employment effects as taxes levied on firms under standard processes of wage determination.