Arbeitspapier
Estimating the Impacts of Payroll Taxes: Evidence from Canadian Employer-Employee Tax Data
In this paper, we use linked employer-employee administrative tax data from Canada to estimate the impact of payroll taxes on a variety of firms and workers outcomes. At the firm level, we use geographic and time variations in tax rates to identify the effect of payroll taxes on wage growth at the worker level. For one province, we exploit a clean overtime change in the payroll tax rate to estimate its impact on the firm's level of employment, average wage and productivity, with difference-in-differences models, taking into account firm-level unobserved heterogeneity. Additionally, taking advantage of the nature of linked data, we estimate wage equations with both fixed worker and firm fixed effects. We find no impact on employment, productivity and profits, but significant impacts on wages, implying that payroll taxes are passed almost entirely to workers in the form of lower wages.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 11598
- Classification
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Wirtschaft
Fiscal Policy
Labor Force and Employment, Size, and Structure
Firm Performance: Size, Diversification, and Scope
- Subject
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payroll taxes
wages
productivity
employment
linked employer-employee data
- Event
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Geistige Schöpfung
- (who)
-
Deslauriers, Jonathan
Dostie, Benoit
Gagné, Robert
Paré, Jonathan
- Event
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Veröffentlichung
- (who)
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Institute of Labor Economics (IZA)
- (where)
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Bonn
- (when)
-
2018
- Handle
- Last update
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10.03.2025, 11:45 AM CET
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
- Deslauriers, Jonathan
- Dostie, Benoit
- Gagné, Robert
- Paré, Jonathan
- Institute of Labor Economics (IZA)
Time of origin
- 2018
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