01715cas a2200241 a 4500 AALejournalIMF007531 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451922745 1018-5941 BD-DhAAL BD-DhAAL Thomas, Alun. The Effects of Tax Wedges on Hours Worked and Unemployment in Sweden / Alun Thomas. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper investigates the relationship between labor taxation and unemployment in Sweden by estimating a labor market model that includes a wage-setting locus and labor demand and supply relationships. The study simulates the effect of a 1 percentage point increase in the payroll tax and in total tax rates. The increase in the payroll tax pushes up labor costs by about 1\2 percent over a 5-10 year time horizon. Hours worked fall by 0.5 percent and the unemployment rate rises by 0.3 percentage point. The increase in total tax rates generates a similar result. Therefore, it appears that increases in taxes have adversely affected employment and unemployment in Sweden. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/152 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/152/001.1998.issue-152-en.xml IMF e-Library