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 identication. Using event study designs and differences-in-differences models, we find that workers bear about half of the total tax burden. Administrative linked employer-employee data allow us to estimate heterogeneous firm and worker effects. Our findings highlight the importace 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: | Paper |
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Keywords: | Business taxation; incidence; administrative data; local taxation |
Faculties: | Economics > Chairs > Chair for Public Economics |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | H20, H70, J30 |
Place of Publication: | München |
Language: | English |
Item ID: | 59661 |
Date Deposited: | 03. Jan 2019, 18:42 |
Last Modified: | 03. Jan 2019, 18:42 |