Fiscal Policy and Employment in Advanced and Emerging Economies

Policy Papers, June 15, 2012

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Fiscal Policy and Employment in Advanced and Emerging Economies

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Bibliographic details

• Published: June 15, 2012
• Series: Policy Papers

Scope and methodology

• Uses data for 58 advanced and emerging economies to provide a unified assessment of tax and expenditure measures.
• Focuses on incentives to increase labor demand and supply rather than on the impact of fiscal policy on employment through aggregate demand effects.
• Discusses policies to improve the matching of labor supply and demand.
• Provides a comprehensive set of tables on fiscal policies and labor market outturns for advanced and emerging economies to permit cross-country comparisons and facilitate the design of reform strategies.
• Publication date: June 15, 2012.

Key findings

• Tax and expenditure policy reforms can be designed to raise employment by targeting incentives affecting labor demand and labor supply.
• A unified assessment of tax and expenditure measures reveals complementarities and trade-offs that are often missed when these measures are considered separately.
• Improving the matching of labor supply and demand is an important channel through which fiscal policy can boost employment.

Policy recommendations and principles for reform design

• Design country-specific fiscal reforms guided by principles that align tax and expenditure measures with incentives to increase labor demand and supply.
• Use cross-country comparisons, enabled by the paper’s comprehensive tables, to inform reform strategies tailored to country circumstances.

Additional information

• Subjects covered: Demand, Developed countries, Emerging markets, Employment, Fiscal policy, Government expenditures, Labor markets, Labor supply, Tax policy.

Source: Fiscal Policy and Employment in Advanced and Emerging Economies, June 15, 2012, International Monetary Fund.

Content in this bundle

• Fiscal Policy and Employment in Advanced and Emerging Economies; IMF Policy Paper; June 15, 2012
  • Fiscal Policy and Employment in Advanced and Emerging Economies; IMF Policy Paper; June 15, 2012 (Markdown version)
  • Fiscal Policy and Employment in Advanced and Emerging Economies; IMF Policy Paper; June 15, 2012 (PDF)