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.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2022:12

Klassifikation
Wirtschaft
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Time Allocation and Labor Supply
Thema
Earnings supply
Income taxation

Ereignis
Geistige Schöpfung
(wer)
Miao, Dingquan
Selin, Håkan
Söderström, Martin
Ereignis
Veröffentlichung
(wer)
Institute for Evaluation of Labour Market and Education Policy (IFAU)
(wo)
Uppsala
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Miao, Dingquan
  • Selin, Håkan
  • Söderström, Martin
  • Institute for Evaluation of Labour Market and Education Policy (IFAU)

Entstanden

  • 2022

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