A Fiscal Job? An Analysis of Fiscal Policy and the Labor Market
IMF Working Papers, December 12, 2014
Source details
- Canonical URL
- A Fiscal Job? An Analysis of Fiscal Policy and the Labor Market
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Bibliographic details
- Authors: Elva Bova, Christina Kolerus, Sampawende J Tapsoba
- Published: December 12, 2014
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498330473.001
Summary / Research question
- Examines the impact of fiscal policy on employment through the lenses of Okun’s Law.
- Uses a panel of OECD countries over the past three decades.
Key findings
- Fiscal policy can affect employment beyond the impact traditionally assumed to occur through the output multiplier.
- The employment impact is found to be effective for most items of current discretionary expenditure.
- Corporate income taxes and social security contributions have measurable effects on employment.
- Okun’s Law is found to be stable under almost all model specifications.
- Higher spending on subsidies and lower social security contributions can amplify the impact of the output gap on employment gaps.
Data and scope
- Panel: OECD countries
- Time span: past three decades (as described in the paper)
- Pages: 27
- Series: Working Paper No. 2014/216
- Volume: 2014
- Issue: 216
- DOI: https://doi.org/10.5089/9781498330473.001
- ISBN: 9781498330473
- ISSN: 1018-5941
Subject areas and keywords
- Subjects: Employment, Fiscal policy, Labor, Output gap, Production, Social security contributions, Taxes, Unemployment
- Keywords: capital expenditure, center, Employment, employment gap, employment gaps, employment multiplier, employment outcome, firms hire, fiscal policy, Global, labor market, labor market outcome, Output gap, Social security contributions, substitution effect, Unemployment, wage, wage bill, WP
Authors and publication
- By Elva Bova, Christina Kolerus, Sampawende J Tapsoba
- Date: December 12, 2014
- Publication type: IMF Working Papers
Source: "A Fiscal Job? An Analysis of Fiscal Policy and the Labor Market", IMF Working Paper No. 2014/216, Elva Bova, Christina Kolerus, Sampawende J Tapsoba, December 12, 2014. Canonical URL: https://www.imf.org/en/publications/wp/issues/2016/12/31/a-fiscal-job-an-analysis-of-fiscal-policy-and-the-labor-market-42518