Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/51691
Authors: 
Arulampalam, Wiji
Devereux, Michael P.
Maffini, Giorgia
Year of Publication: 
2010
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5293
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.
Subjects: 
income tax
wage bargaining
effective incidence
JEL: 
H22
H25
J50
Document Type: 
Working Paper

Files in This Item:
File
Size
464.06 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.