How Unemployment is down?

Abstract

In this research paper a model with annual panel data from Mexico, Costa Rica, El Salvador, Honduras,and Nicaragua, for the period 1995-2007 is examined to assess the responses of unemployment to changes in a number of economic variables. The article concludes that there is evidence to argue that a tax reform that would generate sufficient resources to close the fiscal deficit and increasing public investment would result in strengthening national saving and private investment, thereby increasing the rate of economic growth.