Labor Tax Cuts And Employment A General Equilibrium Approach For France

Author: Raphael A. Espinoza
Publisher: International Monetary Fund
ISBN: 1498386474
Size: 42.22 MB
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Labor Tax Cuts And Employment A General Equilibrium Approach For France from the Author: Raphael A. Espinoza. The paper presents a simple supply side, general equilibrium model to estimate the macroeconomic effects of labor tax cuts. The model assumes that output is produced using capital, unskilled and skilled workers, and public servants. Wage formation for skilled workers features a Blanchflower-Oswald wage curve, while the labor supply for unskilled workers is very elastic around the minimum wage for small changes in employment. The model is calibrated for France and used to estimate the output and employment effects induced by two recent tax reforms: the Crédit d’Impôt pour la Compétitivité et l’Emploi (CICE) and the Pacte de Solidarité Responsabilité (RSP). We find that the tax cuts, if not offset by other fiscal measures, would contribute overall to creating around 200,000 jobs in the short run (600,000 jobs in the long run). Since the model abstracts from demand side effects, the results should be interpreted as providing estimates of the effect of tax measures on potential output and potential employment.

France 2014 Article Iv Consultation Staff Report Press Release And Statement By The Executive Director For France

Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
ISBN: 1498324169
Size: 46.27 MB
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France 2014 Article Iv Consultation Staff Report Press Release And Statement By The Executive Director For France from the Author: International Monetary Fund. European Dept.. This 2014 Article IV Consultation highlights that the economy of France fared better than most other large euro areas economies through the crisis, reflecting the resilience of private consumption, lack of financial fragmentation, and lower levels of household and corporate debt. Banks’ financial position has also been strengthened. But after two years of near stagnation, unemployment remains high. A loss of competitiveness has also weighed on growth. The outlook is for a gradual recovery, with GDP growth projected at 0.7 percent in 2014 and 1.4 percent in 2015, based on stronger external and domestic private demand, reflecting gains in real disposable income and improved profit margins.

France Selected Issues

Author: International Monetary Fund. European Dept.
Publisher: International Monetary Fund
ISBN: 1513518828
Size: 75.61 MB
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France Selected Issues from the Author: International Monetary Fund. European Dept.. This Selected Issues paper analyzes expenditure reforms in France. After decades of rising public spending and successive tax increases, the medium-term fiscal consolidation path described in the 2015 Stability Program is now fully expenditure based. However, recent efforts of nominal spending containment have not delivered the intended savings in the context of low growth and inflation. A thorough review of the efficiency of public spending could help prepare more fundamental reforms of spending programs and processes to underpin a lasting reduction in expenditures, which reached a record high of 57.2 percent of GDP in 2014.

Youth Unemployment In Advanced Economies In Europe Searching For Solutions

Author: Angana Banerji
Publisher: International Monetary Fund
ISBN: 1484330064
Size: 13.65 MB
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Youth Unemployment In Advanced Economies In Europe Searching For Solutions from the Author: Angana Banerji. The SDN will assess the youth unemployment problem in advanced European countries, with a special focus on the euro area. It will document the main trends in youth and adult unemployment in 22 European countries before and after the global financial crisis. It will identify the main drivers of youth and adult unemployment, focusing in particular on the role of the business cycle and structural characteristics of the labor market. It will outline the main elements of a comprehensive strategy to address the problem.

How Do Fiscal And Labor Policies In France Affect Inequality

Author: Mr. Raphael A. Espinoza
Publisher: International Monetary Fund
ISBN: 1475599803
Size: 59.95 MB
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How Do Fiscal And Labor Policies In France Affect Inequality from the Author: Mr. Raphael A. Espinoza. This paper explores the impact of fiscal and labor market policies on efficiency, inequality, and fiscal outcomes in France. We extend the general equilibrium model calibrated for France by Alla and others (2015), with measures of labor and capital income for different groups in the economy (the unemployed, unskilled workers, skilled workers, public servants). For each of these groups we combine data on the income distribution with the outcomes of policy simulations to assess the impact of a suite of stylized policies on output, the fiscal balance, the Gini coefficient, and the shape of the Lorenz curve. We find that most types of fiscal expansions, while adding to the deficit and debt in the near term, generally reduce inequality, the main exception being capital income tax cuts. A reduction of the minimum wage has an ambiguous impact on the income distribution: the Gini coefficient increases, but the lowest income quintile improves its relative position in the income distribution thanks to positive employment effects. The paper also finds scope for “win-win” policy packages that could improve overall efficiency, inequality, and fiscal outcomes, for instance if targeted labor tax reductions are offset by cuts in the public wage bill.

Coursesmart International E Book For Modern Principles Of Economics

Author: Tyler Cowen
Publisher: Palgrave Macmillan
ISBN: 1464162913
Size: 45.11 MB
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Coursesmart International E Book For Modern Principles Of Economics from the Author: Tyler Cowen. Engaging authors, unbiased presentations of essential ideas, and a knack for revealing the 'invisible hand' of economics at work inform the thoroughly updated new edition of Modern Principles, drawing on a wealth of captivating applications to show readers how economics shed light on business, politics, world affairs, and everyday life.

Economics

Author: Paul Anthony Samuelson
Publisher: McGraw-Hill Companies
ISBN: 9780070548794
Size: 48.37 MB
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Economics from the Author: Paul Anthony Samuelson. Contains chapter overview and outline, learning objectives, key concept review, helpful hints, multiple choice questions and problem solving questions