Arbeitspapier
Do Higher Corporate Taxes Reduce Wages?
This paper estimates the incidence of corporate taxes on wages using a 20-year panel of German municipalities. Administrative linked employer-employee data allows estimating heterogeneous worker and firm effects. We set up a general theoretical framework showing that corporate taxes can have a negative effect on wages in various labor market models. Using an event study design, we test the predictions of the theory. Our results indicate that workers bear about 40% of the total tax burden. Empirically, we confirm the importance of both labor market institutions and profit shifting possibilities for the incidence of corporate taxes on wages.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 9606
- Classification
-
Wirtschaft
- Subject
-
business tax
wage incidence
administrative data
local taxation
- Event
-
Geistige Schöpfung
- (who)
-
Fuest, Clemens
Peichl, Andreas
Siegloch, Sebastian
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2015
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fuest, Clemens
- Peichl, Andreas
- Siegloch, Sebastian
- Institute for the Study of Labor (IZA)
Time of origin
- 2015
Other Objects (12)
Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Do higher corporate taxes reduce wages? Micro evidence from Germany
Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Do higher corporate taxes reduce wages? Micro evidence from Germany
Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Wage Incidence of Local Corporate Taxation - Micro Evidence from Germany
Wer trägt die Lasten von Steuern auf Unternehmensgewinne? - Lehren aus den Erfahrungen mit der deutschen Gewerbesteuer
Accounting for labor demand effects in structural labor supply models
Sufficient Statistic or Not? The Elasticity of Taxable Income in the Presence of Deduction Possibilities
Acht Elemente einer grundlegenden Reform des Steuer- und Transfersystems
Grundeinkommen vs. Kombilohn: Beschäftigungs- und Finanzierungswirkungen und Unterschiede im Empfängerkreis
Grundeinkommen vs. Kombilohn: Beschäftigungs- und Finanzierungswirkungen und Unterschiede im Empfängerkreis
Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Do higher corporate taxes reduce wages? Micro evidence from Germany
Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Do higher corporate taxes reduce wages? Micro evidence from Germany
Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Wage Incidence of Local Corporate Taxation - Micro Evidence from Germany
Wer trägt die Lasten von Steuern auf Unternehmensgewinne? - Lehren aus den Erfahrungen mit der deutschen Gewerbesteuer
Accounting for labor demand effects in structural labor supply models
Sufficient Statistic or Not? The Elasticity of Taxable Income in the Presence of Deduction Possibilities
Acht Elemente einer grundlegenden Reform des Steuer- und Transfersystems
Grundeinkommen vs. Kombilohn: Beschäftigungs- und Finanzierungswirkungen und Unterschiede im Empfängerkreis
Grundeinkommen vs. Kombilohn: Beschäftigungs- und Finanzierungswirkungen und Unterschiede im Empfängerkreis
Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Do higher corporate taxes reduce wages? Micro evidence from Germany
Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Do higher corporate taxes reduce wages? Micro evidence from Germany
Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Wage Incidence of Local Corporate Taxation - Micro Evidence from Germany
Wer trägt die Lasten von Steuern auf Unternehmensgewinne? - Lehren aus den Erfahrungen mit der deutschen Gewerbesteuer
Accounting for labor demand effects in structural labor supply models
Sufficient Statistic or Not? The Elasticity of Taxable Income in the Presence of Deduction Possibilities
Acht Elemente einer grundlegenden Reform des Steuer- und Transfersystems
Grundeinkommen vs. Kombilohn: Beschäftigungs- und Finanzierungswirkungen und Unterschiede im Empfängerkreis