Impact of the 2018 fiscal reform on wage income in Romania
Carmen Petrovici, (LIS)
Looking at the newly released long series of Romanian data in the LIS database Carmen Petrovici unravels what stands behind the remarkable increase in the gross wage income in the latest years. In 2018 Romania implemented a fiscal reform, which, among other measures, switched most of the social contributions paid by the employer over to the employees, and in order to absorb the new fiscal burden, the gross wages increased. However, this increase in gross wages is not followed by a similar increase in the net wages over the same period.
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