Economic interpretation of the effects of social contributions on labor factor

About social contributions can be said to have a great impact on labor use and efficiency in general. Affecting economic efficiency is in fact a very complex phenomenon resulting from the possibility of translation contributions. As for taxes, social contributions translation can be done by or employed by sales prices. Shift to avoid the consequences of social contributions, which is accepted hypothesis confrm between direct wages and social costs involved an arbitration. The most important, however, is the incidence of social contributions on labor use. This comes either from a bearing higher contributions by employees, either from an increase in labor costs compared to capital, ie an increased contribution from the company to fund social security.