Seriously, less taxes? Tax reform's effects over labor supply

Using a matching and a difference in differences approach we analyzed the impact of a payroll costs reduction implemented through a tax reform in Colombia on worked hours and hourly income -- Existing studies have found mixed results, while increases in wages are commonly found, the results for employment and worked hours effects are a source of debate with no consensus on sight -- However, in line with earlier revisions of literature, we concluded that the effect of payroll costs reductions is positive and significant on both, worked hours and income -- In this paper, using socioeconomic data from Colombia we found that those individuals a effected by a payroll cost reduction between 2012-2014 exhibited significant increases in both hours and income compared to similar individuals una effected by this framework

• Autores: Isaza Cadavid, Juan Esteban; Salazar Duque, Juan Guillermo
• Fecha de publicación: 2015
• Institución: Universidad EAFIT
• Repositorio: Repositorio EAFIT
• OAI Identifier: oai:repository.eafit.edu.co:10784/8537
• Acceso en línea: http://hdl.handle.net/10784/8537
• Palabra clave: Modelos de diferencias; Ley 1607 de 2012; MERCADO LABORAL - COLOMBIA; REFORMA TRIBUTARIA; COSTO DE MANO DE OBRA; JORNADA DE TRABAJO; MODELOS ECONOMÉTRICOS; Labor supply; Wages; Labor costs; Hours of Labor; Econometric models
• License: Acceso abierto