o the lymnD the upwrd trend in iuropen unemployment is relted to the slowdown of eonomi growthF e rgue tht the lymns view is orretF he inrese in iuropen unemployment nd the slowdown in eonomi growth re reltedD euse they stem from ommon useX n exessively rpid growth in the ost of lourF sn iuropeD lour osts hve gone up for mny resonsD ut one is prtiulrly esy to identifyX higher txes on lourF sf wges re set y strong nd deentrlized trde unionsD n inrese in lour txes is shifted onto higher rel wgesF his hs two effetsF pirstD it redues lour demndD nd thus retes unemploymentF eondlyD s firms sustitute pitl for lourD the mrginl produt of pitl fllsY over long periods of timeD this in turn diminishes the inentive to invest nd to growF he dt strongly support this viewF eording to our estimtesD the oserved rise of IR perentge points in lour tx rtes etween IWTS nd IWWS in the i ould ount for rise in i unemployment of roughly R perentge pointsD redution of the investment shre of output of out Q perentge pointsD nd growth slowdown of out HFR perentge points yerF prneso hveri nd quido ellini U n e m p l o y m e n t a n d t a x e s D o t a x e s a f f e c t t h e r a t e o f u n e m p l o y m e n t ?ionomi oliy epril PHHH rinted in qret fritin # giD giD wrD PHHHF
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.