Impact of payroll taxes for small shoe manufacturing enterprises profit generation in Bogota city 15th district

Abstract

In this paper we illustrate the financial difficulties that payroll taxes would impose on small shoe manufacturing enterprises in Bogota City 15th district and how this would impose some restrictions for firms profit generation, when such contributions turns out to be a fixed cost. We present a brief on the legal framework as well as an econometric exercise that shows the relations between labor costs and profit generation for the footwear industry in the 15th urban district of Bogotá city.