Payroll taxes and firm performance

Arbeitspapier

The Swedish employer paid payroll tax was reduced substantially for young workers in 2007, causing firms' average social fees to depend on the age structure of their employees. Using pre-reform conditions to define treated and control firms, we show that the lower costs induced by the reduced taxes have no impact on exit rates or profitability. We find negligible effects on gross investments, and negative, but not statistically significant, effects on labor productivity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFN Working Paper ; No. 1175

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Empirical Analysis ; Taxation and Subsidies: Incidence ; Wages, Compensation, and Labor Costs: Public Policy ; Firm Performance: Size, Diversification, and Scope
• Subject: Payroll taxes ; Labor costs ; Profitability ; Labor productivity ; Investments ; Windfall gain ; Tax subsidy ; Firm survival

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Egebark, Johan ; Kaunitz, Niklas
• Event: Veröffentlichung
• (who): Research Institute of Industrial Economics (IFN)
• (where): Stockholm
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/183404
• Last update: 10.03.2025, 11:41 AM CET