Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207328 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12502
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the earnings responses to three large increases in employer Social Security contributions (SSCs) in France. We find evidence of full pass-through to workers in the case of a strong and salient relationship between contributions and expected benefits. By contrast, we find limited pass-through of employer SSCs to wages for reforms that increased SSCs with no tax-benefit linkage. Together with a meta-analysis of the literature, we interpret these results as evidence that tax-benefit linkage and its salience matter for incidence, a claim long made by the literature but not backed by direct empirical evidence to date.
Subjects: 
tax incidence
payroll tax
social security contributions
tax-benefit linkage
JEL: 
H22
H55
Document Type: 
Working Paper

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