RT Journal Article
T1 Reduce employers´social security contributions and control labor fraud: remedies for Spain´s ailing economy?
A1 Alvarez Martínez, María Teresa
A1 Polo, Clemente
K1 Computable general equilibrium models
K1 Social security contributions
K1 Labor fraud
AB The aim of this paper is to quantify the impact of the reduction on social security contributions (SSCs) of employers recently claimed by the Spanish enterprisers’ organizations on the main macroeconomic variables. The effects of this tax reform are evaluated with a Computable General Equilibrium model with the neoclassical closure rule. The model is calibrated with a Social Accounting Matrix for the year 2000 (SAMES-00) elaborated by the authors.Results show that lower SSCs of employers raise employment, households’welfare and real gross domestic product (GDP) but also increase the public deficit. These positive effects remain when the reduction is compensated with personal income taxes to keep the public deficit/GDP ratio constant and also when the compensating variable is value-added tax (VAT). Unlike in previous studies, the most positive effects are obtained when the lower public revenues are compensated via lower coverage of unemployment benefits
PB Routledge Taylor & Francis Group
YR 2014
FD 2014
LK https://hdl.handle.net/10433/26123
UL https://hdl.handle.net/10433/26123
LA en
NO Economic Systems Research 26,2.pp. 141-154
NO Rutgers, the State University of New Jersey and Universidad Autónoma de Barcelona
DS RIO
RD May 8, 2026