Acton Institute Powerblog

How taxing work affects employment

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Note: This is post #104 in a weekly video series on basic economics.

An important factor influencing an individual’s decision whether to keep working as they get older is their government’s tax and retirement policies. Taxes on earnings plus penalties, like losing retirement benefits, gives us an implicit tax rate, explains economist Alex Tabarrok. Countries with higher implicit tax rates for older workers see a much lower labor force participation rate for people considered retirement age.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

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Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).

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