TY - BOOK AU - Thomas,Alun H. TI - The Effects of Tax Wedges on Hours Worked and Unemployment in Sweden T2 - IMF Working Papers; Working Paper SN - 1451922744 : SN - 1018-5941 PY - 1998/// CY - Washington, D.C. PB - International Monetary Fund KW - Employment KW - imf KW - Labor Cost KW - Payroll Taxes KW - Payroll KW - Total Labor Taxes KW - Unemployment KW - Sweden N2 - 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 1/2 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 UR - http://elibrary.imf.org/view/IMF001/06928-9781451922745/06928-9781451922745/06928-9781451922745.xml UR - http://www.imfbookstore.org/IMFORG/9781451922745 ER -