Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307209 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17385
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Norwegian workers' job mobility decisions are related to firms' wage policies, but also depend on the national tax schedule. By utilising Norwegian population-wide administrative linked employer-employee data on workers and firms between 2010-2019, we study how the job-to-job turnover of employees is affected by marginal taxes and firms' pay policies, enabling inferences to be made about on-the-job search. Paying higher wages is associated with a drop in job-to-job separation rates, but this negative relationship is weakened when income taxes increase. Higher taxes imply strictly reduced search activity, but less so for bonus job-workers than salaried workers.
Subjects: 
job search
marginal taxes
monopsony
wages
effort
JEL: 
H24
J42
J63
M12
Document Type: 
Working Paper

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