Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Studia Universitatis „Vasile Goldis” Arad – Economics Series

4 Issues per year

Open Access
See all formats and pricing
More options …

Labour Taxation – A Comparative Study

Claudia Florina Radu / Professor Florin Dumiter / Laura Opret
Published Online: 2015-06-16 | DOI: https://doi.org/10.1515/sues-2015-0001


In our paper we aim to analyze the tax wedge between labor costs and net wage, this being the main indicator for assessing the tax burden on labor. We analyze the components of the tax wedge and its evolution in time, in the OECD countries and in Romania. In this way we can get an image of the total labor cost, observing that our country belongs to countries where labor taxes have a very high level. Thus, from our analysis we showed that in Romania the tax wedge is around 42%, while the OECD average was only 35.9%. In these circumstances it is necessary to adopt certain measures for shifting the tax burden from labor to other tax bases, with the purpose of a fiscal relaxation of labor income

Keywords: labor taxes; tax wedge; tax burden; social contributions


  • 1. Azemar, C., Desbordes, R. (2009). Who Ultimately Bears the Burden of Greater Non-Wage Labour costs?, Retrieved from etpf.org/papers/44SSC.pdf Accessed november 2014Google Scholar

  • 2. Eugène, B., Bisciari, P., Nautet, M., Stinglhamber, P., Van Meensel, L. (2013). Trends in tax systems in the EU, Retrieved from http://www.nbb.be/doc/oc/repec/ecrart/ecorevIII2013_H2.pdf Accessed november 2014Google Scholar

  • 3. Hutsebaut, M., (2013). Taxation policies from a European perspective, Retrieved from perc.ituc-csi.org/IMG/pdf/taxation_policies_from_a_european_ perspective_ martin_hutsebaut_cle07eebf.pdf Accessed december 2014Google Scholar

  • 4. Leibfritz, W., Thornton, J., Bibbee, A., (1997). Taxation and economic performance, OECD Economics Department Working Papers No. 176Google Scholar

  • 5. Morawski, L., Myck, M. (2007). `Klin'-ing up: reforming taxes on labour in Poland, Retrieved from seminar.wne.uw.edu.pl/uploads/Main/klin_paper_11DecEN.pdf Accessed december 2014Google Scholar

  • 6. Piketty, T., Saez, E. (2012). Optimal labor income taxation, Retrieved from https://ideas.repec.org/p/nbr/nberwo/18521.html Accessed november 2014Google Scholar

  • 7. Pomerleau, K. (2014). A Comparison of the Tax Burden on Labor in the OECD, Retrieved from http://taxfoundation.org/article/comparison-tax-burden-labor-oecd Accessed november 2014Google Scholar

  • 8. Radu, C. F. (2009), Presiunea fiscala, Ed. Mega, Cluj-NapocaGoogle Scholar

  • 9. Rusu F., (2005) Majorarea TVA, efect de bumerang, Retrieved from http://www.wall-street.ro/articol/Economie/6080/Majorarea-TVA-efect-debumerang.html Accessed december 2014Google Scholar

  • 10. Trpeski, P., Tashevska, B. (2012). Labour tax wedge in the republic of Macedonia - Trends and international comparison, Retrieved from oeconomica.uab.ro/upload/lucrari/1420122/24.pdf Accessed december 2014Google Scholar

  • 11. Urban, I. (2009). The tax burden on labour in Croatia, Retrieved from ijf.hr/eng/newsletter/47.pdf Accessed december 2014Google Scholar

  • 12. OECD (2014), Taxing Wages 2014, OECD Publishing, Retrieved from http://dx.doi.org/10.1787/tax_wages-2014-en Accessed november 2014CrossrefGoogle Scholar

  • 13. Tax burden on labour, European Commission, 2014, Retrieved from ec.europa.eu/europe2020/pdf/themes/21_tax_burden_on_labour.pdf Accessed december 2014Google Scholar

  • 14. Tax reforms in EU Member States, 2013, Retrieved from protothema.gr/files/1/2013/10/09/taxation_paper_38.pdf Accessed december 2014Google Scholar

  • 15. Taxation trends in the European Union - Data for the EU Member States, Iceland and Norway, 2013 edition, Retrieved from ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/ economic_analysis/tax_structures/2013/report.pdf Accessed november 2014 Google Scholar

About the article

Received: 2015-02-01

Accepted: 2015-04-01

Published Online: 2015-06-16

Published in Print: 2015-05-01

Citation Information: Studia Universitatis „Vasile Goldis” Arad – Economics Series, Volume 25, Issue 1, Pages 1–15, ISSN (Online) 1584-2339, DOI: https://doi.org/10.1515/sues-2015-0001.

Export Citation

© 2015. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

Comments (0)

Please log in or register to comment.
Log in