Does Tax-Benefit Linkage Matter for the Incidence of Social Security Contributions?

Arbeitspapier

We study the earnings responses to three large increases in employer Social Security contributions (SSCs) in France. We find evidence of full pass-through to workers in the case of a strong and salient relationship between contributions and expected benefits. By contrast, we find limited pass-through of employer SSCs to wages for reforms that increased SSCs with no tax-benefit linkage. Together with a meta-analysis of the literature, we interpret these results as evidence that tax-benefit linkage and its salience matter for incidence, a claim long made by the literature but not backed by direct empirical evidence to date.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 12502

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Taxation and Subsidies: Incidence ; Social Security and Public Pensions
• Thema: tax incidence ; payroll tax ; social security contributions ; tax-benefit linkage

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bozio, Antoine ; Breda, Thomas ; Grenet, Julien
• Ereignis: Veröffentlichung
• (wer): Institute of Labor Economics (IZA)
• (wo): Bonn
• (wann): 2019

Weitere Informationen

• Handle: http://hdl.handle.net/10419/207328
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ