nach oben

Erschienen in:

2017 | OriginalPaper | Buchkapitel

12. Overtaxation of Private Sector Salaried Employment as a Key Impediment to the Recovery of Greece

verfasst von : Michael Mitsopoulos

Erschienen in: Taxation in Crisis

Verlag: Springer International Publishing

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

The practice of taxing heavily employment in the private sector in Greece is a key factor that impedes the growth of the average Greek company, reducing productivity and salaried employment to low levels even before the crisis. The disadvantageous treatment of private sector employment, through the tax wedge, takes place when compared both internationally and, with other income source alternatives, domestically. The high tax-free threshold that does not focus on supporting families and pensioners in old age and the high non-retributive social security contributions are among the main parameters that have to be changed in a drastic way in order to alleviate the situation of private sector employees, especially up to medium incomes, in a fiscally neutral way. An additional rationalization of the excessive progressivity of income taxes should aim toward the long-term growth of employees that earn higher wages, from their currently low numbers. An increase of growth prospects and decline in country risk are needed, both to bolster the lower end of the job market and to stop the decline at the top end.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Vorheriges Kapitel Taxing Energy: Why, How, and How Much?

Nächstes Kapitel The Reaction of the Greek Private Sector Job Market to Changes in Tax Rates and Uncertainty

Nur mit Berechtigung zugänglich

Acemoglu, D., & Robinson, J. (2012). Why Nations Fail: The Origins of Power, Prosperity and Poverty (1st ed.). New York: Crown.

Agell, J., & Persson, M. (1998). Tax Arbitrage and Labor Supply (NBER Working Paper No. 6708).

Aghion, P., Akcigit, U., Cagé, J., & Kerr, W. (2016). Taxation, Corruption, and Growth (NBER Working Paper No. 21928).

Akcigit, U., Baslandze, S., & Stantcheva, S. (2015, May). Taxation and the International Mobility of Inventors (CEPR Discussion Paper No. DP10565).

Alesina, A. (2010). Fiscal Adjustments: Lessons from Recent History. Prepared for the Ecofin meeting in Madrid, April 15, 2010.

Alesina, A., & Ardagna, S. (2013). The Design of Fiscal Adjustments (Scholarly Articles). Harvard University Department of Economics.

Anderberg, D. (2003). Insiders, Outsiders, and the Underground Economy (CESifo Working Paper Series, No. 1048). CESifo Group Munich.

Arpaia, A., & Carone, G. (2004). Do Labor Taxes (And Their Composition) Affect Wages in the Short and the Long Run? Alfonso Arpaia and Giuseppe Carone, No. 216, European Economy—Economic Papers 2008–2015, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

Auerbach, A., & Gorodnichenko, Y. (2012). Measuring the Output Responses to Fiscal Policy. American Economic Journal—Economic Policy, 4(2), 1–27.CrossRef

Auerbach, A., & Hassett, K. (2016). Capital Taxation in the 21st Century (NBER Working Paper No. 20871).

Bachmann, R., Elstner, S., & Eric, S. (2013). Uncertainty and Economic Activity: Evidence from Business Survey Data. American Economic Journal: Macroeconomics, American Economic Association, 5(2), 217–249.

Bartelsman, E., Halitwanger, J., & Scarpetta, S. (2013). Cross-Country Differences in Productivity: The Role of Allocation and Selection. American Economic Review, 103(1), 305–334.CrossRef

Bassanini, A., & Duval, R. (2006). The Determinants of Unemployment Across OECD Countries. Post-Print, HAL.

Batini, N., Callegari, G., & Melina, G. (2012). Successful Austerity in the United States, Europe and Japan (IMF Working Paper WP/12/190).

Blanchard, O., & Leigh, D. (2012). Are We Underestimating Fiscal Multipliers? In IMF World Economic Outlook October 2012.

Blundell, R. (1995). The Impact of Taxation on Labor Force Participation and Labor Supply (OECD Jobs Study Working Papers).

Bocconi University. (2011). The Role and Impact of Labour Taxation Policies (Paper prepared for European Commission).

Brown, C., Hamilton, J., & Medoff, J. (1990). Employers Large and Small. Cambridge, MA: Harvard University Press.

Brown, C., & Medoff, J. (1989). The Employer Size-Wage Effect. Journal of Political Economy, 97(5), 1027–1059.CrossRef

Cacciatore, M., Duval, R., & Fiori, G. (2012). Short-Term Gain or Pain? A DGSE Model-based Analysis of the Short-term Effects of Structural Reforms in Labor and Product Markets (OECD Economics Department Working Papers no. 948). Paris: OECD Publishing.

Cacciatore, M., & Fiori, G. (2016). The Macroeconomic Effects of Goods and Labor Markets Deregulation. Review of Economic Dynamics, 20, 1–24.CrossRef

Campos, N., & Giovannoni, F. (2006). Lobbying, Corruption and Political Influence. Public Choice, 131(1), 1–21.

Carone, G., Salomäki, A., Immervoll, H., & Paturot, D. (2003). Indicators of Unemployment and Low-Wage Traps (Marginal Effective Tax Rates on Labour, No. 197, European Economy—Economic Papers 2008–2015). Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

Cette, G., Lopez, J., & Mairesse, J. (2016). Labor Market Regulations and Capital Intensity (NBER Working Paper No. 22603).

Daveri, F., & Tabellini, G. (2000). Unemployment, Growth and Taxation in Industrial Countries. Economic Policy, 15(30), 47–104. 04.CrossRef

Davis S., & Henrekson, M. (2004). Tax Effects on Work Activity, Industry Mix and Shadow Economy Size: Evidence from Rich-Country Comparisons (NBER Working Paper No. 10509).

di Tella, R., & McCullock, R. (2006). Corruption and the Demand for Regulating Capitalists. In S. Rose-Ackerman (Ed.), International Handbook on the Economics of Corruption. Cheltenham, UK: Edward Elgar.

di Tella, R., & McCullock, R. (2007). Why Doesn’t Capitalism Flow to Poor Countries? (NBER WP 13164).

Diamond, P. (1998). Optimal Income Taxation: An Example with a U-Shaped Pattern of Optimal Marginal Tax Rates. American Economic Review, 88(1), 83–95.

ECB. (2010a, May). The Greek Economic and Financial Adjustment Program. ECB Monthly Bulletin.

ECB. (2010b, July). The Effectiveness of Euro Area Fiscal Policies. ECB Monthly Bulletin.

Ekelund, R. B., & Tollison, R. (1981). Mercantilism as a Rent-Seeking Society: Economic Regulation in Historical Perspective. Texas: A&M University Press.

Euro Health Consumer Index. (2015). Health Consumer Powerhouse. ISBN 978-91-980687-5-7.

European Commission. (2012a). The Contribution of Taxes to Fiscal Consolidation in the Euro Area. Quarterly Report on the Euro Area, 11(1), 18–23.

European Commission. (2012b). European Economic Forecast. European Economy 7|2012. Autumn.

European Commission. (2013, June). Assessing the impact of uncertainty on consumption and investment. Quarterly Report on the Euro Area, 12(2). Directorate General for Economic and Financial Affairs (ECFIN).

European Commission. (2015). Assessment of the Social Impact of the new Stability Support Programme for Greece. Commission Staff Working Document. Brussels, SWD (2015) 162 final.

Feldstein, M. (1995). The Effect of Marginal Tax Rates on Taxable Income: A Panel Study of the 1986 Tax Reform Act. Journal of Political Economy, 103(3), 551–572.CrossRef

Fiori, G., Nicoletti, G., Scarpetta, S., & Schiantarelli, F. (2008). Employment Outcomes and the Interaction Between Product and Labor Market Deregulation: Are They Substitutes or Complements? (Boston College Working Papers in Economics, No. 663). Boston College Department of Economics.

Gal, P., & Theising, A. (2015). The Macroeconomic Impact of Structural Policies on Labor Market Outcomes in OECD Countries: A Reassessment (OECD Economics Department Working Paper No. 1271). Paris: OECD Publishing.

Garcia, J., & Sala, H. (2006). The Tax System Incidence on Unemployment: A Country-Specific Analysis for the OECD Economies (IZA Discussion Papers, No. 2226). Institute for the Study of Labor (IZA).

Gaspar, V., Obstfeld, M., & Sahay, R. (2016). Macroeconomic Management When Policy Space Is Constrained: A Comprehensive, Consistent, and Coordinated Approach to Economic Policy (Staff Discussion Note 16/09). Washington, DC: International Monetary Fund.

Giannitsis, T., & Zografakis, S. (2015). Greece: Solidarity and Adjustment in Times of Crisis. Institut für Makroökonomie und Konjunkturforschung. Macroeconomic Policy Institute of the Hans-Boeckler-Foundation.

Gibson, J., & Stillman, S. (2009). Why Do Big Firms Pay Higher Wages? Evidence from an International Database. The Review of Economics and Statistics, 91(1), 213–218.CrossRef

Giroud, X., & Rauh, J. (2017). State Taxation and the Reallocation of Business Activity: Evidence from Establishment-Level Data (US Census Bureau Center for Economic Studies Paper No. CES-WP-17-02, Stanford University Graduate School of Business Research Paper No. 17–7).

Guichard, S., Kennedy, M., Wurzel, E., & André, C. (2007). What Promotes Fiscal Consolidation: OECD Country Experiences (OECD Economics Department Working Paper no. 553). Paris: OECD.

Hall, R. (1973). Wages, Income and Hours of Work in the US Labor Force. In G. Cain & H. Watts (Eds.), Income Maintenance and Labor Supply. Chicago: Rand McNally.

Haltiwanger, J., Jarmin, R., & Miranda, J. (2013). Who Creates Jobs? Small vs. Large vs. Young. Review of Economics and Statistics, XCV(2), 347–361.CrossRef

Hausman, J. A. (1980). The Effect of Wages, Taxes and Fixed Costs on Women’s Labor Force Participation. Journal of Public Economics, 14, 161–194.CrossRef

Hausman, J. A. (1981). Labor Supply. In H. J. Aaron & J. A. Pechman (Eds.), How Taxes Affect Economic Behaviour. Washington DC: Brookings Institution.

Hausman, J. A., & Poterba, J. M. (1987). Household Behaviour and the Tax Reform Act of 1986. Journal of Economic Perspectives, 1, 101–119.CrossRef

Heitger, B. (2000). Unemployment and Labor Market Rigidities in OECD Countries; The Impact of Taxes (Kiel Working Papers). Kiel Institute for the World Economy.

Hellman, J., Jones, G., & Kaufmann, D. (2000). Seize the State, Seize the Day: State Capture, Corruption, and Influence in Transition Economies (World Bank Policy Research Working Paper No. 2444, Washington).

Holzer, H. (1988). The Determinants of Employee Productivity and Earnings. Some New Evidence (NBER Working Paper 2782).

IFC. (2012). Assessing Private Sector Contributions to Job Creation: IFC Open Source Study. International Finance Corporation World Bank Group.

IMF. (2006, December). Greece—Staff Report for the 2006 Article IV Consultation.

IMF. (2010a, May 9). Greece Program. IMF Approves €30 Bln Loan for Greece on Fast Track.

IMF. (2010b). Recovery, Risk and Rebalancing. World Economic Outlook, World Economic and Financial Surveys, October.

IMF. (2016). IMF World Economic Outlook.

IMF. (2017). Greece—Directors Summing up for the 2016 Article IV Consultation.

Immervoll, H. (2004). Average and Marginal Effective Tax Rates Facing Workers in the EU: A Micro-level Analysis of Levels, Distributions and Driving Factors (Revised Version of EM2/02, No. EM6/04, EUROMOD Working Papers). EUROMOD at the Institute for Social and Economic Research.

Keane, M. (2011). Labor Supply and Taxes: A Survey. Journal of Economic Literature, 49, 961–1075.CrossRef

King, M. A., & Fullerton, D. (1984). The Taxation of Income from Capital: A Comparative Study of the United States, The United Kingdom, Sweden, and West Germany. Chicago: University of Chicago Press.

Kolm, A.-S., & Birthe, L. (2003, November). Wages, Unemployment, and the Underground Economy (CESifo Working Paper Series No. 1086). Available at SSRN: http://ssrn.com/abstract=478247

Kostantlellos, N. (2015). Talent Management, form Drain to Gain! Presentation by CEO of ICAP Group SA at the 1st ICAP Human Capital Summit, Thursday, June 4, Athens, Greece.

Kumar, K., Rajan, R., & Zingales L. (1999). What Determines Firm Size? (NBER Working Paper No. 7208).

Lambsdorf, J. (2006). Causes and Consequences of Corruption: What Do We Know from a Cross-section of Countries? In S. Rose-Ackerman (Ed.), International Handbook on the Economics of Corruption. Edward Elgar, Cheltenham, UK/Northampton, MA.

Lehmann, E., Lucifora C., Moriconi S., & Bruno, VdL (2013). Beyond the Labor Income Tax Wedge: The Unemployment-Reducing Effect of Tax Progressivity (July 31) (CESifo Working Paper Series No. 4348).

Leventi, C., & Matsaganis, M. (2016). Disentangling Annuities and Transfers in Pension Benefits: Evidence from Greece. 15th Conference on Research on Economic Theory and Econometrics Tinos, July 12–16 2016.

Malliaropoulos, D. (2011). The Competitiveness Loss of the Greek Economy after the Country’s EMU Accession. In G. Hardouvelis & Ch. Gortsos (Eds.), The International Crisis, the Eurozone Crisis and the Greek Financial System. Hellenic Bank Association. [in Greek]

Mankiw, G., Weinzierl, M., & Yagan, D. (2009). Optimal Taxation in Theory and Practice. Journal of Economic Perspectives, American Economic Association, 23(4), 147–174.CrossRef

Manski, C. (2012a). Identification of Income-Leisure Preferences and Evaluation of Income Tax Policy (Cemmap Working Paper 07/12). Institute for Fiscal Studies.

Manski, C. (2012b). Income Tax and Labor Supply: Let’s Acknowledge What We Don’t Know, 23 August 2012.

Matsaganis, M. (2007). Union Structures and Pension Outcomes in Greece. British Journal of Industrial Relations, 45(3), 537–555.CrossRef

Matsaganis, M. (2013). The Greek Crisis: Social Impact and Policy Responses. Study, Friedrich Ebert Stiftung. http://library.fes.de/pdf-files/id/10314.pdf

Meghir, C., & Phillips, D. (2010). Labor Supply and Taxes. In T. Besley, R. Blundell, M. Gammie, & J. Poterba (Eds.), Dimensions of Tax Design: the Mirrlees Review. Oxford University Press.

Mirrlees, J. A. (1971). An Exploration in the Theory of Optimum Income Taxation. The Review of Economic Studies, 38(2), 175–208.CrossRef

Mitsopoulos, M. (2014). Manufacturing, Competition and Business Environment. Removal of Obstacles—Opening to International Competition. In C. Gortsos & M. Massourakis (Eds.), Comepetitiveness for Growth: Policy Proposals. Athens: Hellenic Bank Association.

Mitsopoulos, M. (2016). Greek Export and Labor Market Performance: Facts and Myths. In L. Paganetto (Ed.), Stagnation Versus Growth in Europe Capitalism in the 21st Century. Berlin: Springer.

Mitsopoulos, M., & Pelagidis, T. (2008). Comparing the Administrative and Financial Autonomy of Higher Education Institutions in 7 EU Countries. Intereconomics: Review of European Economic Policy, 43(5), 2–274.CrossRef

Mitsopoulos, M., & Pelagidis, T. (2009). Vikings in Greece: Kleptocratic Interest Groups in a Closed, Rent Seeking Economy. Cato Journal, 29(2), 389–406.

Mitsopoulos, M., & Pelagidis, T. (2011). Understanding the Crisis in Greece. Basingstoke: Palgrave Macmillan.CrossRef

Moretti, E., & Wilson, D. (2015, April). The Effect of State Taxes on the Geographical Location of Top Earners: Evidence from Star Scientists (NBER Working Paper No. w21120).

Nickell, S. (2004). Employment and Taxes (CEP Discussion Papers). Centre for Economic Performance, LSE.

Nicoletti, G., & Scarpetta, S. (2003). Regulation, Productivity and Growth: OECD Evidence. OECD Economics Department Working Paper 347.

North, D. (1989). Institutions and Economic Growth: An Historical Introduction. World Development, 17(9), 1319–1332.CrossRef

North, D. (1990). Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.CrossRef

OECD. (2013). PISA 2012 Results: What Makes Schools Successful. InResources, Policies and Practices (Vol. IV). Paris: OECD.

Olson, M. (1982). The Rise and Decline of Nations. London: Yale University Press.

Pelagidis, T., & Misopoulos, M. (2014). Greece: From Exit to Recovery? Washington, DC: Brookings Institution Press.

Pelagidis, T., & Misopoulos, M. (2016). Who Is to Blame for Greece? Auserity in Charge of Saving a Broken Economy. Basingstoke: Palgrave Macmillan.

Persson, T., & Tabellini, G. (2000). Political Economics, Explaining Economic Policy. Cambridge, MA: MIT Press.

Petrucci, A., & Phelps, E. (2009). Two-Sector Perspectives on the Effects of Payroll Tax Cuts and Their Financing. Journal of Public Economics, 93(1–2), 176–190.CrossRef

Pissarides, C. (1998). The Impact of Employment Tax Cuts on Unemployment and Wages: The Role of Unemployment Benefits and Tax Structure. European Economic Review, 42, 155–184.CrossRef

Planas, C., Roeger, W., & Rossi, A. (2007). How Much Has Labor Taxation Contributed to European Structural Unemployment? Journal of Economic Dynamics and Control, 31(4), 1359–1375.CrossRef

Price, R. W., Dang, T., & Botev, J. (2015). Adjusting Fiscal Balances for the Business Cycle: New Tax and Expenditure Elasticity Estimates for OECD Countries (OECD Economics Department Working Papers, No. 1275). Paris: OECD Publishing.

Ramsey, F. P. (1927). A Contribution to the Theory of Taxation. The Economic Journal, 37(145), 47.CrossRef

Robbins, L. (1930). On the Elasticity of Demand for Income in Terms of Effort. Economica, 29, 123–129.CrossRef

Rogerson, R. (2007). Taxation and Market Work: Is Scandinavia an Outlier? (NBER Working Papers, No. 12890). National Bureau of Economic Research, Inc.

Rose-Ackerman, S. (2006). Introduction. In R.-A. Susan (Ed.), International Handbook on the Economics of Corruption. Cheltenham, UK/Northampton, MA: Edward Elgar.CrossRef

Rosen, H. (1979). What Is Labor Supply and Do Taxes Affect It? (NBER Working Paper No. 411, Also Reprint No. r0120) Issued in November 1979.

Saez, E., Slemrod, J., & Giertz, S. (2012). The Elasticity of Taxable Income with Respect to Marginal Tax Rates: A Critical Review. Journal of Economic Literature, 50, 3–50.CrossRef

Sánchez C. A., de Serres, A., & Yashiro, N. (2016). Reforming in a Difficult Macroeconomic Context: A Review of the Issues and Recent Literature (OECD Economics Department Working Papers, No. 1297) Paris: OECD Publishing.

Seward, T. (2008). The Impact of Taxes on Employment and Economic Growth in Industrialized Countries (MPRA Paper). Germany: University Library of Munich.

Sinko, P. (2004). Progressive Taxation Under Centralised Wage Setting (Discussion Papers, No. 349). Government Institute for Economic Research Finland (VATT).

Sinko, P. (2005). Does Centralised Wage Setting Lead into Higher Taxation? Labor and Demography, EconWPA.

Stern, N. (1986). On the Specification of Labor Supply Functions. In R. Blundell & I. Walker (Eds.), Unemployment, Search and Labor Supply (pp. 143–189). Cambridge: Cambridge University Press.

The Economist. (2012a, March 3). The Decline and the Small, Free Exchange.

The Economist. (2012b). The Cloud of Uncertainty Dithering in the Dark. Quantifying the Effect of Political Uncertainty on the Global Economy June 16th 2012.

The Economist. (2013). Uncertainty and Unemployment, Jan 23rd 2013.

Thomas, A. (2011). How Tax Can Tackle the Jobs Crisis (OECD Observer No. 287 Q4 2011). OECD Centre for Tax Policy and Administration.

Tinios, P. (2016). Greek Pension Reform Once Again: Explaining Its Logic and Issues. LSE Briefing Note, Hellenic Observatory. http://www.lse.ac.uk/europeanInstitute/research/hellenicObservatory/CMS%20pdf/HO%20staff%20in%20Prees/BRIEFING-NOTE-PT.pdf

Triest, R. K. (1990). The Effect of Income Taxation on Labor Supply in the United States. The Journal of Human Resources, 25(3), 491–516.CrossRef

Tsibouris, G., Horton, M., Flanagan, M., & Maliszewski, W. (2006). Experience with Large Fiscal Adjustments. International Monetary Fund. Fiscal Affairs Dept.

Tullock, G. (1967). The Welfare Costs of Tariffs, Monopolies, and Theft. Western Economic Journal, 5, 224–232.

Zidar, O. (2015). Tax Cuts For Whom? Heterogeneous Effects of Income Tax Changes on Growth and Employment (NBER Working Paper No. 21035).

Titel: Overtaxation of Private Sector Salaried Employment as a Key Impediment to the Recovery of Greece
verfasst von: Michael Mitsopoulos
Verlag: Springer International Publishing
Buch: Taxation in Crisis
Print ISBN: 978-3-319-65309-9

Electronic ISBN: 978-3-319-65310-5

Copyright-Jahr: 2017
DOI: https://doi.org/10.1007/978-3-319-65310-5_12