Can lowering payroll taxes really create more jobs?

In this video, Tiziano Toniolo presents the key findings of his PhD in Economics at UCLouvain, conducted within the LIDAM institute.

He investigates a central question in labor economics: Do payroll tax cuts lead to meaningful job creation?
Through the evaluation of Belgian labor market reforms, his research explores:
• The effects of exempting new employers from social security contributions
• The behavioral response of firms and workers to hiring subsidies
• The impact of a "social work bonus" on low-wage, part-time employment

Using microeconometric methods and structural modeling, Tiziano shows how such policies can sometimes backfire - shifting labor to less productive firms rather than creating sustainable growth.

A timely topic, as governments around the world rethink their employment policies in the face of technological and environmental transitions.