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Do VAT reductions create jobs?: Measuring the effects of the VAT reduction in Restaurant services onemployment in the restaurant sector, using the synthetic control method
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2015 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis examines what effects the VAT reduction on restaurant services imposed in Sweden the first of January 2012 has had on the number of employed in the restaurant sector after the reform. The synthetic control method is used with register based employment data and sum of wages as outcome variables. My estimations show that the employment in the restaurant sector had increased with 7.2 percent (around 7,700 persons) two years after the reform and that the sum of wages increased with 7.6 percent during the same period.

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URN: urn:nbn:se:uu:diva-255713OAI: oai:DiVA.org:uu-255713DiVA: diva2:823315
Available from: 2015-06-18 Created: 2015-06-18 Last updated: 2015-06-18Bibliographically approved

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