Efficient Job Creation in LDCs Requires a Tax on Employment
Bibliographic Data
| ID | 9712581 |
|---|---|
| Authors | David de Meza (0000-0002-5638-8310, University of Exeter), Piergiovanna Natale (0000-0001-9830-718X, Università Cattolica del Sacro Cuore) |
| Year | 1989 |
| Volume | 99 |
| Issue | 398 |
| Pages | 1112 |
| Publication date | 1989-12-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.2307/2234091 |
| OpenAlex | W2073024173 |
| Language | EN |
| Citations received | 11 |
| References cited | 4 |
This paper argues that, contrary to the views of most development economists, policies that raise the cost of labor relative to capital are in the collective and individual interest of LDCs. The reason is that low wages mean that the attractiveness of an LDC production location is positively correlated with labor intensity. A labor tax combined with a capital subsidy consequently hits hardest the processes willing to pay the most to produce in an LDC. Even if employment is a concern, the policy is still beneficial if elasticities of substitution are in the empirically relevant range
Art · Economic history · Economics · Law and economics · Library science · Management · Political science · Sociology · Computer Science · Corporate Taxation and Avoidance · Economic Policies and Impacts · Politics, Economics, and Education Policy
Skill Differentials and Inequality in the North
Trade Shifts and Sectoral Side‐Effects
Factor Content of Noncompeting Trade
Summary and Conclusions
Evidence from Previous Studies
Unemployment in the North
Past and Future
Policy Options for the North
Skill Differentials and Inequality in the South
Theoretical Framework
North-South Trade, Employment and Inequality
| Unique citing works | 11 |
|---|---|
| Citations per year | 0,35 |
| Citation span | 1995 - 1995 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 11 |