Publication:
Estimating the Impact of Labor Taxes on Employment and the Balances of the Social Insurance Funds in Turkey

dc.contributor.authorWorld Bank
dc.date.accessioned2017-09-07T20:30:29Z
dc.date.available2017-09-07T20:30:29Z
dc.date.issued2009-04
dc.description.abstractHigh labor tax wedges and slow formal employment growth have combined to make labor tax reform an important economic policy issue in Turkey. This synthesis report presents the results of a series of empirical studies of the impact of a labor tax reform. The analysis was undertaken before the social contribution reforms that were introduced as part of the 2008 employment package. Using data from firms, households, and social insurance files, the research finds that employment does respond to changes in labor costs at levels that are comparable to those found in other middle-income and Organization for Economic Co-operation and Development (OECD) countries. The results show that reducing labor costs could significantly boost registered employment. However, the actual effect of lower taxes on employment would be diluted because a significant portion of the reduced tax will be captured by workers through higher wages rather than by employers through lower labor costs. As a result, tax cuts targeted towards low-wage labor would be more cost-effective than across-the-board reductions. To achieve overall fiscal neutrality, compensating additional revenues from other sources or reduced expenditures will be needed to accompany lower contribution rates.en
dc.identifierhttp://documents.worldbank.org/curated/en/167581468311115427/Estimating-the-impact-of-labor-taxes-on-employment-and-the-balances-of-the-social-insurance-funds-in-Turkey
dc.identifier.doi10.1596/28211
dc.identifier.urihttps://hdl.handle.net/10986/28211
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectACTIVE LABOR
dc.subjectACTIVE LABOR MARKET
dc.subjectACTIVE LABOR MARKET PROGRAMS
dc.subjectADJUSTMENT PROCESS
dc.subjectAGGREGATE EMPLOYMENT
dc.subjectAVERAGE WAGE
dc.subjectBARGAINING
dc.subjectBARGAINING POWER
dc.subjectCOMPETITIVE LABOR MARKETS
dc.subjectCONSUMPTION TAX
dc.subjectCONTRIBUTION RATE
dc.subjectDEADWEIGHT
dc.subjectDEADWEIGHT LOSS
dc.subjectDEADWEIGHT LOSSES
dc.subjectDISCUSSIONS
dc.subjectDOWNWARD BIAS
dc.subjectEARNING
dc.subjectECONOMIC GROWTH
dc.subjectEMPLOYEE
dc.subjectEMPLOYER CONTRIBUTION
dc.subjectEMPLOYER CONTRIBUTIONS
dc.subjectEMPLOYERS
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT CREATION
dc.subjectEMPLOYMENT EFFECT
dc.subjectEMPLOYMENT EFFECTS
dc.subjectEMPLOYMENT GROWTH
dc.subjectEMPLOYMENT IMPACT
dc.subjectEMPLOYMENT IMPACTS
dc.subjectEMPLOYMENT INCREASES
dc.subjectEMPLOYMENT LEVEL
dc.subjectEMPLOYMENT LEVELS
dc.subjectEMPLOYMENT MODELS
dc.subjectEMPLOYMENT ORGANIZATION
dc.subjectEMPLOYMENT PERFORMANCE
dc.subjectEMPLOYMENT PROBABILITIES
dc.subjectEMPLOYMENT RATE
dc.subjectEMPLOYMENT RATES
dc.subjectEMPLOYMENT STATUS
dc.subjectEMPLOYMENT SUBSIDIES
dc.subjectEMPLOYMENT SUBSIDY
dc.subjectEMPLOYMENT TAXES
dc.subjectENERGY SUBSIDIES
dc.subjectFEMALE EMPLOYMENT
dc.subjectGROSS WAGE
dc.subjectGROSS WAGES
dc.subjectHEALTH INSURANCE
dc.subjectHIRING
dc.subjectINCOME
dc.subjectINCOME TAX
dc.subjectINFORMAL EMPLOYMENT
dc.subjectINFORMAL SECTOR
dc.subjectJOB CREATION
dc.subjectJOBS
dc.subjectLABOR COMPENSATION
dc.subjectLABOR COST
dc.subjectLABOR COSTS
dc.subjectLABOR DEMAND
dc.subjectLABOR DEMAND ELASTICITIES
dc.subjectLABOR DEMAND ELASTICITY
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET INSTITUTIONS
dc.subjectLABOR MARKET POLICIES
dc.subjectLABOR MARKETS
dc.subjectLABOR SUPPLY
dc.subjectLOW-WAGE EMPLOYMENT
dc.subjectMANUFACTURING INDUSTRIES
dc.subjectMANUFACTURING INDUSTRY
dc.subjectMINIMUM WAGE
dc.subjectMINIMUM WAGES
dc.subjectNET EMPLOYMENT
dc.subjectNET EMPLOYMENT EFFECT
dc.subjectNET EMPLOYMENT IMPACT
dc.subjectNET EMPLOYMENT IMPACTS
dc.subjectOLDER WORKERS
dc.subjectOUTPUTS
dc.subjectPAYROLL TAX
dc.subjectPAYROLL TAXES
dc.subjectPERSONAL INCOME TAXES
dc.subjectPOLITICAL ECONOMY
dc.subjectPRESENT ANALYSIS
dc.subjectPREVIOUS ONE
dc.subjectPREVIOUS SECTION
dc.subjectPRIVATE SECTOR
dc.subjectPRODUCTION WAGE
dc.subjectPRODUCTION WORKERS
dc.subjectPROGRAM DESIGN
dc.subjectREAL WAGE
dc.subjectSERVICE SECTOR
dc.subjectSOCIAL BENEFITS
dc.subjectSOCIAL SECURITY
dc.subjectSTAFF
dc.subjectSUBSIDIZATION
dc.subjectSUBSIDIZED EMPLOYMENT
dc.subjectSUBSIDIZED JOB
dc.subjectSUBSIDIZED JOBS
dc.subjectSUBSTITUTION EFFECTS
dc.subjectTAX BASE
dc.subjectTAX CHANGES
dc.subjectTAX CREDIT
dc.subjectTAX CREDITS
dc.subjectTAX CUTS
dc.subjectTAX INCIDENCE
dc.subjectTAX LAW
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAX REDUCTION
dc.subjectTAX REDUCTIONS
dc.subjectTAX REFORM
dc.subjectTAX REFORMS
dc.subjectTAX SUBSIDIES
dc.subjectTAX SUBSIDY
dc.subjectTAX SYSTEM
dc.subjectTAX WEDGE
dc.subjectTAX WEDGES
dc.subjectTAXATION
dc.subjectTEMPORARY EMPLOYMENT
dc.subjectTOTAL EMPLOYMENT
dc.subjectTOTAL WAGE
dc.subjectTRADE UNIONS
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT BENEFITS
dc.subjectUNEMPLOYMENT INSURANCE
dc.subjectUNEMPLOYMENT INSURANCE FUND
dc.subjectUNEMPLOYMENT INSURANCE FUNDS
dc.subjectUNEMPLOYMENT RATE
dc.subjectWAGE EMPLOYMENT
dc.subjectWAGE LEVEL
dc.subjectWAGE LEVELS
dc.subjectWAGE RATE
dc.subjectWAGE SECTOR
dc.subjectWAGE SUBSIDY
dc.subjectWAGE SUBSIDY SCHEME
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectYOUNG WORKERS
dc.titleEstimating the Impact of Labor Taxes on Employment and the Balances of the Social Insurance Funds in Turkeyen
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titleEstimating the Impact of Labor Taxes on Employment and the Balances of the Social Insurance Funds in Turkey
okr.date.disclosure2013-02-20
okr.date.doiregistration2025-05-07T10:48:24.002673Z
okr.doctypeEconomic & Sector Work::Other Social Protection Study
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/167581468311115427/Estimating-the-impact-of-labor-taxes-on-employment-and-the-balances-of-the-social-insurance-funds-in-Turkey
okr.guid167581468311115427
okr.identifier.externaldocumentum000442464_20130220150748
okr.identifier.internaldocumentum17364370
okr.identifier.report44056
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/167581468311115427/pdf/440560WP0ENGLI0Labor0Tax0Paper02009.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryTurkiye
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicSocial Protections and Labor::Labor Management and Relations
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.topicSocial Protections and Labor::Labor Standards
okr.topicSocial Protections and Labor::Social Funds and Pensions
okr.unitHuman Development Sector Unit (ECSHD)
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