Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/183404 
Year of Publication: 
2017
Series/Report no.: 
IFN Working Paper No. 1175
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
The Swedish employer paid payroll tax was reduced substantially for young workers in 2007, causing firms' average social fees to depend on the age structure of their employees. Using pre-reform conditions to define treated and control firms, we show that the lower costs induced by the reduced taxes have no impact on exit rates or profitability. We find negligible effects on gross investments, and negative, but not statistically significant, effects on labor productivity.
Subjects: 
Payroll taxes
Labor costs
Profitability
Labor productivity
Investments
Windfall gain
Tax subsidy
Firm survival
JEL: 
D22
H22
J38
L25
Document Type: 
Working Paper

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