Table 5 Sensitivity analysis (percentage change with respect to the benchmark)
From: The effect of payroll taxes on employment and wages under high labor informality
Reform scenario A under benchmark | Scenario A under lower valuation of CSI services | Scenario A under higher valuation of CSI services | Scenario A under higher valuation of NCSI transfers | Scenario A under higher enforcement of payroll taxes | |
|---|---|---|---|---|---|
Employment | |||||
Total employment(a) | 0.3 | 0.2 | 0.4 | 0.3 | 0.3 |
Salaried formal | 3.7 | 3.5 | 5.1 | 3.8 | 4.1 |
Salaried informal | 0.9 | 1.5 | −1.3 | 0.9 | 0.5 |
Own-account | −4.3 | −4.8 | −3.5 | −4.4 | −4.3 |
Earnings | |||||
Formal gross wage | −4.0 | −4.0 | −3.6 | −3.8 | −4.0 |
Formal net wage(b) | 4.9 | 4.9 | 5.3 | 5.0 | 4.9 |
Informal gross wage | 2.9 | 3.6 | 2.6 | 3.0 | 2.9 |
Informal net wage(b) | 3.0 | 3.8 | 2.7 | 3.2 | 3.0 |
After-tax average earnings, own account | 2.8 | 3.1 | 2.6 | 2.9 | 2.8 |
After-tax average earnings, employers | 4.0 | 3.0 | 4.7 | 4.2 | 3.9 |