Resumen

ANDRADE ROSAS, Luis Antonio. Impact of Taxes on Tobacco Consumption on the Labor Market: an Analysis of Externalities for Mexico. Econ. y Desarrollo [online]. 2024, vol.168, n.2  Epub 18-Jun-2024. ISSN 0252-8584.

The tobacco industry, like any other, is a participant in the gross domestic product and the generation of employment in any country. However, governments have established fiscal mechanisms to eradicate its consumption, due to the diseases it causes such as lung cancer, chronic bronchitis; what can lead to death. In this sense, an application of an externalities model for tobacco production in Mexico is proposed. Two mechanisms were obtained for the eradication of tobacco; one of them implies that companies reduce workers' wages due to the increase in taxes. A second is to increase tobacco prices allowing companies to balance their budget. Both mechanisms imply a budget imbalance for citizens, but the second is a socially optimal solution, since only tobacco users are affected and not those who depend on the company's employment and salary.

Palabras clave : balances; externalities; taxes; labor market; Mexico.

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