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• W2162608075 abstract "By using theoretical model and empirical analysis, we investigate how economic integration affects the impact of welfare policies on the employment. We consider the possibilities of financing public sector, i.e. public consumption and social security expenses, by general labour taxation in an economy which becomes more integrated in international product market. Increasing job mobility implies a change in the distortions arising from taxes and social security contributions levied on labour which affects the possibilities perceive in pursui ng welfare policies. The effects of economic integration on the impact of welfare policies on employment depend definitely trade­off between intensified competition and better advantage of economies of scale. As increased trade competition crowds out better advantage of economies of scale, it becomes more costly to maintain welfare systems financed by labour taxation. We test the idea whether economic integration has changed the impact of welfare policies on the employment in European countries using data from the manufacturing sector from 1975 to 2004. Overall, the results provide inconsistent evidence for the hypothesis that economic integration has contributed the distortion effects of welfare policies on the employment." @default.
• W2162608075 created "2016-06-24" @default.
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• W2162608075 date "2005-01-01" @default.
• W2162608075 modified "2023-09-27" @default.
• W2162608075 title "Welfare Policies, Labour Taxation, Employment and Economic Integration: Econometric Evidence from European Countries*" @default.
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