Impact of Corporate Taxation on Unemployment

Zirgulis, Aras; Šarapovas, Tadas

doi:10.3846/16111699.2016.1278400

Cited by 20 publications

(17 citation statements)

References 25 publications

(29 reference statements)

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“…It can be presumed that the statistically insignificant links cause greater effects of some other labor market factors while solving the problems of unemployment. For instance, sufficient unemployment benefits or corporate taxes discourage from looking for other employment alternatives, such as self-employment [22].…”

Section: The Results Of the Empirical Researchmentioning

confidence: 99%

The Links between Unemployment and Self-Employment: Evidence from the EU Countries

2019

APH

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the purpose of this work is to research the links between the unemployment and self-employment rates in the EU member states and provide recommendations on how to manage these links. The results of the empirical study have established that measures to reduce the global unemployment rate, suitable for all EU Member States, cannot be placed on the labor market. Calculations have shown that in the period of 2007-2017, which covered the financial crisis and the upturn, EU countries need to be grouped into specific groups and for each group of countries select appropriate measures to reduce unemployment. The first group of EU countries experienced a "pull" factor effect, the second was the effect of the "push" factor, on unemployment, thus making in the first group of countries more effective self-employment measures to reduce unemployment while the second group of countries-supporting self-employment measures was ineffective in combating unemployment problems.

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Section: The Results Of the Empirical Researchmentioning

confidence: 99%

The Links between Unemployment and Self-Employment: Evidence from the EU Countries

2019

APH

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“…Such employees are also self-employed or have temporary contracts with a very short notice period and which do not require justification of the causes for dismissal [Drela 2016]. The reasons for this situation may be found in the increase of labour costs caused by over-taxing entrepreneurs [Fraisse et al 2015, Zirgulis andŠarapovas 2017]. From the author's own calculation made on the basis of GUS data, in 2005--2017 entrepreneurs preferred to hire on mandate and specific-task contracts, as shown in Figure 1.…”

Section: Methodsmentioning

confidence: 99%

Company Consolidation and Its Impact on the Precariat in Poland

Ejsmont

2019

aspe

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The aim of this article is to present research on consolidation of enterprises, especially units operating in the private sector. The method of comparative analysis and synthesis of the author’s own research results was used in the study, which proved the hypothesis that consolidation of the surveyed enterprises, which operate in the private sector, causes a gradual decrease in the phenomenon of the precariat, mainly due to an increase in the number of indefinite duration employment contracts. The author personally conducted telephone interviews with managers of variously sized companies. The survey covered 1,000 business entities from Poland, including 550 micro enterprises, 280 small enterprises, 120 medium-sized entities and 50 large enterprises, which in the years 2005–2018 were transformed as a result of consolidation processes (mergers or acquisitions). These phone conversations were conducted as free interviews.

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“…In Lithuania, Zirgulis and Sarapovas [11] utilized system General Method of Moments (GMM) to examine how unemployment in 41 nation-states is influenced by changes in corporate income tax. The outcome indicated that an increase in the effective average corporate tax rate significantly increases the unemployment levels.…”

Section: Review Of Related Empirical Literaturesmentioning

confidence: 99%

“…According to this model, the trade union loses some of its bargaining power as corporate income taxes increase, lowering wages, and thereby decreasing unemployment. However, Zirgulis and Sarapovas [11] argued that the study is unclear as to the direction of effect of the corporate tax on unemployment.…”

Section: Review Of Related Empirical Literaturesmentioning

confidence: 99%

“…Moreover, previous studies on the impact of company income tax on unemployment including studies by Zirgulis and Sarapovas [11], Meyer [12] and Alphonsus [13] have provided mixed results. For instance, studies by Zirgulis and Sarapovas [11], as well as Meyer [12] revealed that a rise in the effective average corporate tax (company income tax) rate significantly increases unemployment rate. On the opposite hand, the empirical study of Alphonsus [13] showed that company income tax has an inverse relationship with unemployment.…”

Section: Introductionmentioning

confidence: 99%

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Company Income Tax and Unemployment in Nigeria

George-Anokwuru

Okowa

2021

SAJSSE

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This paper focused on the impact of company income tax on unemployment in Nigeria from 1980 to 2019. The data for this study were sourced from the statistical bulletin of Nigeria’s apex bank. The Augmented Dickey-Fuller (ADF) unit root test and Ordinary Least Squares (OLS) methods were used as the main analytical tools. The ADF unit test result revealed stationarity of the variables at order zero which satisfied the requirement to employ the OLS method. The OLS regression result revealed that corporate income tax has positive and significant relationship with unemployment rate in Nigeria. Prime lending rate has negative and significant relationship with unemployment rate in Nigeria. Inflation rate has negative and insignificant relationship with unemployment rate in Nigeria. The study therefore concluded that tax revenue from company income has not been efficiently and effectively used to provide infrastructural facilities and social amenities that will help the different sectors of the economy to function very well thereby reducing unemployment in the country. Based on the results, the study suggested that government should ensure that revenue from corporate income tax and other sources are efficiently and effectively used to provide infrastructural facilities and social services that will help the different sectors of the economy to function very well, in so doing unemployment will be reduced. The management, administration and implementation of corporate income tax should be done in such a way that it will not hinder investment and employment in the economy. At the same time, ensure accountability and transparency from government officials on the management of revenue derived from company income tax.

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Impact of Corporate Taxation on Unemployment

Cited by 20 publications

References 25 publications

The Links between Unemployment and Self-Employment: Evidence from the EU Countries

The Links between Unemployment and Self-Employment: Evidence from the EU Countries

Company Consolidation and Its Impact on the Precariat in Poland

Company Income Tax and Unemployment in Nigeria

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