
The Library
The direct incidence of corporate income tax on wages
Tools
Arulampalam, Wiji, Devereux, Michael P. and Maffini, Giorgia (2010) The direct incidence of corporate income tax on wages. Working Paper. Bonn: Institute for the Study of Labor (IZA). IZA Discussion Papers (No.5293). (Unpublished)
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://papers.ssrn.com/sol3/Delivery.cfm/dp5293.pd...
Abstract
We examine the extent to which taxes on corporate income are directly shifted onto the workforce. We use data on 55,082 companies located in nine European countries over the period 1996-2003. We identify this direct shifting through cross-company variation in tax liabilities, conditional on value added per employee. Our central estimate is that the long run elasticity of the wage bill with respect to taxation is -0.093. Evaluated at the mean, this implies that an exogenous rise of $1 in tax would reduce the wage bill by 49 cents. We find only weak evidence of a difference for multinational companies.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
---|---|---|---|---|---|
Subjects: | H Social Sciences > HB Economic Theory | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Series Name: | IZA Discussion Papers | ||||
Publisher: | Institute for the Study of Labor (IZA) | ||||
Place of Publication: | Bonn | ||||
Official Date: | October 2010 | ||||
Dates: |
|
||||
Number: | No.5293 | ||||
Number of Pages: | 46 | ||||
Institution: | University of Warwick | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Unpublished | ||||
Access rights to Published version: | Open Access (Creative Commons) | ||||
Funder: | Hundred Group, ETPF, Economic and Social Research Council (ESRC) | ||||
Grant number: | RES-062-23-0163 | ||||
Related URLs: |
Request changes or add full text files to a record
Repository staff actions (login required)
![]() |
View Item |