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A Fiscal Job? An Analysis of Fiscal Policy and the Labor Market, Elva Bova, Christina Kolerus, Sampawende Tapsoba

Creator
Abstract
This paper examines the impact of fiscal policy on employment through the lenses of Okun’s Law. Looking at the panel of OECD countries over the past three decades, we find that fiscal policy can affect employment beyond the impact it is traditionally assumed to exert through the output multiplier. In particular, this impact is found to be effective for most items of current discretionary expenditure and for corporate income taxes and social security contributions. Okun’s Law is found to be stable under almost all model specifications, but higher spending on subsidies and lower social security contributions can amplify the impact of the output gap on employment gaps
Table Of Contents
Cover; Abstract; Contents; I. Introduction; Figures; 1. Unemployment Rates in OECD Countries (2008-14); 2. Differences in Employment Rates Between March 2014 and September 2008; II. Literature Review; A. Expenditure Side; B. Revenue Side; III. Empirical Strategy; A. Methodology; B. Discretionary Fiscal Policy; C. Data; IV. Results; A. Baseline; Tables; 1. Okun's Law: Output and Employment Gaps; 2. Employment Gaps and Discretionary Expenditure; 3. Employment Gaps and Primary Current Discretionary Expenditur; B. Positive and Negative Output Gaps; 4. Employment Gaps and Tax Rates
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (28 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781498358866

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