The Impact On Employment Of The Social Security Tax Of The European Union

After the European sovereign debt crisis,many European countries are facing a severe unemployment problem.Since twenty-first century,the European countries have taken tax reform on social security tax,which reduced the corporate tax burden and increased the employment incentives.Whether the level of social security tax have impact on employment and how to,is a problem worthy of study.The paper first summarizes the development and the newest reforms of the social security tax of EU,then explores the mechanism of social security tax's impact on employment,and the correlations between the social security tax level and employment rate,the unemployment rate and the labor force participation rate,finally analyzes from different angles the employment effect of social security tax of EU.The paper combines the methods of theoretical analysis and empirical analysis which includes qualitative and quantitative analysis methods,using scatter plot method in the qualitative analysis and panel data analysis method in the quantitative analysis,choosing the two indexes of unemployment rate and employment rate to examine the impacts of different social security tax burdens on employment in different regions of the European Union,which is also the main innovation of this paper.Firstly,this paper introduces the background and significance of the research,and reviews the research status at home and abroad.Secondly,it introduces the development process of EU social security tax from the generation,development,current situation and reform trend of EU social security tax,as well as the coordination among the EU Member States.Then it analyzes the impact of EU social security tax on employment from two aspects of theory and demonstration.Finally,in view of the existing problems of the social security tax in EU and the results of the empirical analysis,the paper puts forward the perfect countermeasures and beneficial enlightenment to our country.