Employment and Taxes in Latin America (Fajardo & Lora)

Employment and taxes in Latin America: An empirical study of the effects of payroll, corporate income and value-added taxes on labor outcomes by Deisy J. Fajardo and Eduardo Lora published by IDB (9/2012). “This paper empirically explores the effects of payroll taxes, value-added taxes and corporate income taxes on a variety of labor market outcomes such as employment, unemployment, informality, and wages. Using national-level data on labor variables for 15 Latin America countries, the results indicate that the effects of each tax are distinctly different and may depend on several aspects of labor and tax institutions.”