Arbeitspapier
Earnings responses to even higher taxes
We exploit a recent Swedish tax reform, implying higher marginal tax rates for the top 5% of the earnings distribution, to learn about earnings responses in an economy where taxes already are high. Using a simple and graphical cross sectional method, we estimate earnings elasticities in the range 0.13-0.16. We interpret the response using a simulation model in which people face uncertain marginal tax rates due to earnings dynamics. The tax response is surprisingly sharp given the earnings variability at the top of the earnings distribution.
- Language
-
Englisch
- Bibliographic citation
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Series: Working Paper ; No. 2022:12
- Classification
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Wirtschaft
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Time Allocation and Labor Supply
- Subject
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Earnings supply
Income taxation
- Event
-
Geistige Schöpfung
- (who)
-
Miao, Dingquan
Selin, Håkan
Söderström, Martin
- Event
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Veröffentlichung
- (who)
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Institute for Evaluation of Labour Market and Education Policy (IFAU)
- (where)
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Uppsala
- (when)
-
2022
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
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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
- Miao, Dingquan
- Selin, Håkan
- Söderström, Martin
- Institute for Evaluation of Labour Market and Education Policy (IFAU)
Time of origin
- 2022
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