The impact of taxation on unemployment in OECD countries.

There have been numerous studies of the impact of labor market rigidities upon unemployment rates. The general conclusion for the pair OECD as well as other countries is that rigidities explain a significant part of the observ international variation in unemployment rates (Layard, Nickell, and Jackman 1991)

The primary interest of the near paper is the impact of taxation upon unemployment in OECD countries. The relation between unemployment and taxation has newly attracted special attention. For example, Nickell (1997) has lay the foundation of that taxation is a significant factor in explaining differences in unemployment rates across countries (see also Scarpetta 1996; Nickell and