Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/340778 
Year of Publication: 
2021
Citation: 
[Journal:] Journal of Public Economics Plus [ISSN:] 2666-5514 [Volume:] 2 [Article No.:] 100007 [Year:] 2021 [Pages:] 1-19
Publisher: 
Elsevier, Amsterdam
Abstract: 
We study the role of cognitive ability for individuals' tax responsiveness using linked administrative tax and military enlistment registers. Our main finding is that individuals in the top decile of the ability distribution react twice as strong to a large and salient kink point in the Swedish tax code as compared to the average individual, and three times as strong as individuals in the bottom ability decile. This ability gradient is mainly driven by income shifting among high-ability owners of incorporated businesses, but we also find evidence of labor-supply responses among high-ability wage earners.
Subjects: 
Cognitive ability
Income shifting
Labor supply
Bunching
JEL: 
H21
H24
J22
J24
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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