The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax Reform
In 2012, the Colombian Government reduced employer payroll contributions from 29.5 to 16.0 percent. Two years later, the informality rate had diminished by about 4.0 per-centage points. This paper attempts to estimate how much of this reduction was due to the tax reform, isolating the impact of othe...
- Autores:
- Tipo de recurso:
- Fecha de publicación:
- 2018
- Institución:
- Universidad del Rosario
- Repositorio:
- Repositorio EdocUR - U. Rosario
- Idioma:
- eng
- OAI Identifier:
- oai:repository.urosario.edu.co:10336/18257
- Acceso en línea:
- https://doi.org/10.48713/10336_18257
http://repository.urosario.edu.co/handle/10336/18257
- Palabra clave:
- Mercados informales
Impuestos sobre la nómina
Diferencia en las diferencias
Teoría de búsqueda y emparejamiento
Finanzas públicas
Informal markets
Payroll taxes
Matching
Difference-in-differences
Economía informal
Impuestos a los salarios
Congresos, conferencias, etc.
- Rights
- License
- http://creativecommons.org/licenses/by-nc-sa/2.5/co/
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The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax ReformMercados informalesImpuestos sobre la nóminaDiferencia en las diferenciasTeoría de búsqueda y emparejamientoFinanzas públicasInformal marketsPayroll taxesMatchingDifference-in-differencesEconomía informalImpuestos a los salariosCongresos, conferencias, etc.In 2012, the Colombian Government reduced employer payroll contributions from 29.5 to 16.0 percent. Two years later, the informality rate had diminished by about 4.0 per-centage points. This paper attempts to estimate how much of this reduction was due to the tax reform, isolating the impact of other macroeconomic variables. A natural approach to perform-ing this task is to apply a difference-in-differences methodology using a household survey panel. Since the Colombian survey does not have a panel structure, we simulated one using a matching difference-in-differences methodology. According to the results, the tax reform is associated with a 4.8-percentage-point decrease in the informality of workers affected by the reform in the thirteen main metropolitan areas. This represents approximately half the reduction of the relevant informality rate during that period, affecting mostly salaried men and workers in general with low levels of education.Universidad del Rosario. Facultad de Economía2018-05-282018-08-03T16:11:58Zinfo:eu-repo/semantics/conferenceObjecthttp://purl.org/coar/version/c_970fb48d4fbd8a85http://purl.org/coar/resource_type/c_c94fapplication/pdfhttps://doi.org/10.48713/10336_18257http://repository.urosario.edu.co/handle/10336/18257instname:Universidad del Rosarioreponame:Repositorio Institucional EdocURenghttp://creativecommons.org/licenses/by-nc-sa/2.5/co/http://purl.org/coar/access_right/c_abf2Villar, LeonardoFernández, Cristinaoai:repository.urosario.edu.co:10336/182572021-06-03T00:49:02Z |
dc.title.none.fl_str_mv |
The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax Reform |
title |
The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax Reform |
spellingShingle |
The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax Reform Mercados informales Impuestos sobre la nómina Diferencia en las diferencias Teoría de búsqueda y emparejamiento Finanzas públicas Informal markets Payroll taxes Matching Difference-in-differences Economía informal Impuestos a los salarios Congresos, conferencias, etc. |
title_short |
The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax Reform |
title_full |
The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax Reform |
title_fullStr |
The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax Reform |
title_full_unstemmed |
The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax Reform |
title_sort |
The Impact of Payroll Taxes on Informality : The Case of the 2012 Colombian Tax Reform |
dc.subject.none.fl_str_mv |
Mercados informales Impuestos sobre la nómina Diferencia en las diferencias Teoría de búsqueda y emparejamiento Finanzas públicas Informal markets Payroll taxes Matching Difference-in-differences Economía informal Impuestos a los salarios Congresos, conferencias, etc. |
topic |
Mercados informales Impuestos sobre la nómina Diferencia en las diferencias Teoría de búsqueda y emparejamiento Finanzas públicas Informal markets Payroll taxes Matching Difference-in-differences Economía informal Impuestos a los salarios Congresos, conferencias, etc. |
description |
In 2012, the Colombian Government reduced employer payroll contributions from 29.5 to 16.0 percent. Two years later, the informality rate had diminished by about 4.0 per-centage points. This paper attempts to estimate how much of this reduction was due to the tax reform, isolating the impact of other macroeconomic variables. A natural approach to perform-ing this task is to apply a difference-in-differences methodology using a household survey panel. Since the Colombian survey does not have a panel structure, we simulated one using a matching difference-in-differences methodology. According to the results, the tax reform is associated with a 4.8-percentage-point decrease in the informality of workers affected by the reform in the thirteen main metropolitan areas. This represents approximately half the reduction of the relevant informality rate during that period, affecting mostly salaried men and workers in general with low levels of education. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-05-28 2018-08-03T16:11:58Z |
dc.type.none.fl_str_mv |
info:eu-repo/semantics/conferenceObject |
dc.type.coarversion.fl_str_mv |
http://purl.org/coar/version/c_970fb48d4fbd8a85 |
dc.type.coar.fl_str_mv |
http://purl.org/coar/resource_type/c_c94f |
dc.identifier.none.fl_str_mv |
https://doi.org/10.48713/10336_18257 http://repository.urosario.edu.co/handle/10336/18257 |
url |
https://doi.org/10.48713/10336_18257 http://repository.urosario.edu.co/handle/10336/18257 |
dc.language.none.fl_str_mv |
eng |
language |
eng |
dc.rights.none.fl_str_mv |
http://creativecommons.org/licenses/by-nc-sa/2.5/co/ |
dc.rights.coar.fl_str_mv |
http://purl.org/coar/access_right/c_abf2 |
rights_invalid_str_mv |
http://creativecommons.org/licenses/by-nc-sa/2.5/co/ http://purl.org/coar/access_right/c_abf2 |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidad del Rosario. Facultad de Economía |
publisher.none.fl_str_mv |
Universidad del Rosario. Facultad de Economía |
dc.source.none.fl_str_mv |
instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR |
instname_str |
Universidad del Rosario |
institution |
Universidad del Rosario |
reponame_str |
Repositorio Institucional EdocUR |
collection |
Repositorio Institucional EdocUR |
repository.name.fl_str_mv |
|
repository.mail.fl_str_mv |
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_version_ |
1803710513887051776 |