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.
Item Type: | Journal article |
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Faculties: | Economics > Chairs > Chair for Public Economics |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | H25, H31, H71, J16, J24, J31 |
ISSN: | 1944-7981; 0002-8282 |
Language: | English |
Item ID: | 59221 |
Date Deposited: | 03. Dec 2018, 12:45 |
Last Modified: | 04. Nov 2020, 13:38 |