Do Higher Corporate Taxes Reduce Wages?

Fuest, Clemens; Peichl, Andreas und Siegloch, Sebastian (Februar 2018): Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany. In: American Economic Review, Bd. 108, Nr. 2: S. 393-418

Abstract

This paper estimates the incidence of corporate taxes on wages using a 20-year panel of German municipalities exploiting 6,800 tax changes for identification. Using event study designs and difference-in-differences models, we find that workers bear about one-half of the total tax burden. Administrative linked employer-employee data allow us to estimate heterogeneous firm and worker effects. Our findings highlight the importance of labor market institutions and profit-shifting opportunities for the incidence of corporate taxes on wages. Moreover, we show that low-skilled, young, and female employees bear a larger share of the tax burden. This has important distributive implications.

• Dokumententyp: Zeitschriftenartikel
• Fakultät: Volkswirtschaft > Lehrstühle > Lehrstuhl für Nationalökonomie
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: H25, H31, H71, J16, J24, J31
• ISSN: 1944-7981; 0002-8282
• Sprache: Englisch