<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The aim of the article is to provide a complex analysis of labour taxation impact on economic growth in OECD countries. As main approximators of taxation, implicit tax rates and the World Tax Index are used. Methods and tests of dynamic panel regression with the Arellano-Bond estimator are used from the methodological point of view. From the results of complex analysis, it is evident that there exists a non-linear relationship between tax revenues (implicit tax rates, world tax index) and tax burden (tax rates). There also exists a negative relationship between labour taxation and economic growth and the impact of labour taxation is the most harmful for economic growth. Therefore, in an effort to stimulate economic growth, labour taxation expressed by personal income taxes and social security contributions should be reduced.</p></abstract>

The aim of the article is to provide a complex analysis of labour taxation impact on economic growth in OECD countries. As main approximators of taxation, implicit tax rates and the World Tax Index are used. Methods and tests of dynamic panel regression with the Arellano-Bond estimator are used from the methodological point of view. From the results of complex analysis, it is evident that there exists a non-linear relationship between tax revenues (implicit tax rates, world tax index) and tax burden (tax rates). There also exists a negative relationship between labour taxation and economic growth and the impact of labour taxation is the most harmful for economic growth. Therefore, in an effort to stimulate economic growth, labour taxation expressed by personal income taxes and social security contributions should be reduced.

Labour Taxation and its Impact on Economic Growth – Complex Analysis

University of Social and Administrative Affairs

DANUBE

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Labour Taxation and its Impact on Economic Growth \u2013 Complex Analysis"}

The aim of the article is to provide a complex analysis of labour taxation impact on economic growth in OECD countries. As main approximators of taxation,...

Labour Taxation and its Impact on Economic Growth – Complex Analysis

Published Online: Apr 16, 2018

Page range: 49 - 61

DOI: https://doi.org/10.2478/danb-2018-0004

Keywords
Labour Taxation, Implicit Tax Rates, World Tax Index, Laffer Curve, Economic Growth, Dynamic Panel Regression

© 2018 Rudolf Macek, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Labour Taxation and its Impact on Economic Growth – Complex Analysis

Published Online: Apr 16, 2018

Page range: 49 - 61

DOI: https://doi.org/10.2478/danb-2018-0004

KeywordsLabour Taxation, Implicit Tax Rates, World Tax Index, Laffer Curve, Economic Growth, Dynamic Panel Regression

© 2018 Rudolf Macek, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Labour Taxation, Implicit Tax Rates, World Tax Index, Laffer Curve, Economic Growth, Dynamic Panel Regression