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Departamento de Economía
Documentos de Trabajo
Reducing social contributions on unskilled labour as
a way of ghting unemployment: An empirical
evaluation for the case of Spain
Oscar Bajo-Rubio
Antonio G. G omez-Plana
Abstract
In this paper we provide an empirical evaluation of the eects of
a cut in social security contributions (i) for all types of labour, and
(ii) only for unskilled labour, within a computable general equilibrium
model simulated for the Spanish economy. The model is presented
in two versions, one with perfectly competitive rms and other with
rms following a non-competitive price rule, and incorporates an equal
yield assumption, which means that the reduction in social security
contributions is compensated with an increase in value-added tax rates.
Versión
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