TY - BOOK ID - 84542081 TI - The Effects of Tax Wedges on Hours Worked and Unemployment in Sweden PY - 1998 SN - 1462373089 1452775435 1283561956 9786613874405 1451902204 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Labor KW - Taxation KW - Personal Income and Other Nonbusiness Taxes and Subsidies KW - Wages, Compensation, and Labor Costs: General KW - Demand and Supply of Labor: General KW - Labour KW - income economics KW - Public finance & taxation KW - Welfare & benefit systems KW - Payroll tax KW - Real wages KW - Labor markets KW - Labor taxes KW - Wages KW - Taxes KW - Fiscal policy KW - Labor market KW - Income tax KW - Sweden KW - Income economics UR - https://www.unicat.be/uniCat?func=search&query=sysid:84542081 AB - The paper investigates the relationship between labor taxation and unemployment in Sweden by estimating a labor market model that includes a wage-setting locus and labor demand and supply relationships. The study simulates the effect of a 1 percentage point increase in the payroll tax and in total tax rates. The increase in the payroll tax pushes up labor costs by about ½ percent over a 5–10 year time horizon. Hours worked fall by 0.5 percent and the unemployment rate rises by 0.3 percentage point. The increase in total tax rates generates a similar result. Therefore, it appears that increases in taxes have adversely affected employment and unemployment in Sweden. ER -