Effect of taxes on employment

The effect of taxes on employment is a central topic in the field of public economics, focusing on how taxation, particularly income tax, affects individuals' decisions about how much to work, how many hours to work, and whether to participate in the labour market. The topic plays a critical role in the design of tax policy and understanding its efficiency costs, which are directly related to the elasticity of labour supply.

Source: Wikipedia — Effect of taxes on employment (CC BY-SA 4.0)