Incidence of Tobacco Taxation in Argentina: Employment and Economy-Wide Effects

This Report was written by Centro de Estudios, Distributivos, Laborales y Sociales (CEDLAS) in Argentina. The Report discusses the macroeconomic impacts of increasing tobacco taxes. The authors find that even a significant tax increase in the country does not impact the overall number of jobs, as employment in tobacco-related sectors shifts to other fields. Additional tax revenue from tobacco tax increases can be spent on social services and infrastructure to reduce the negative effects on sectoral employment. Other policies can also be implemented to directly support workers that are negatively impacted by such policies. The report concludes that tobacco tax increases result in improved health without hurting important macroeconomic factors such as employment.