The purpose of this paper is threefold. First, we survey the way in which the tax burden on labour has been proxied for … extent the conclusions of some studies change if some alternative indicator for the tax burden on labour is employed. We … indicator for the tax burden on labour is also shown to affect the conclusions of some well-known empirical models. …

The tax wedge mainly quantifies the extent to which tax on labour income enervates employment and it reflects the total … labour costs. It is commonly defined as the ratio between the amount of taxes paid by the worker and the related total labour … costs for the employer. As such, the tax wedge affects both the labour force (unemployment) by reflecting the burden of the …