Firm heterogeneity and the impact of payroll taxes

Arbeitspapier

We study the impact of a large payroll tax cut for older workers in Hungary. Motivated by the predictions of a standard equilibrium job search model, we examine the heterogeneous impact of the policy. Employment increases most at low-productivity firms offering low-wage jobs, which tend to hire from unemployment, while the effects are more muted for highproductivity firms offering high-wage jobs. At the same time, wages only increase at highproductivity firms. These results point to important heterogeneity in the incidence of payroll tax cuts across firms and highlight that payroll taxes have a significant impact on the composition of jobs in the labor market.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: KRTK-KTI Working Papers ; No. KRTK-KTI WP - 2022/23

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Fiscal Policies and Behavior of Economic Agents: Firm ; Labor Demand ; Wage Level and Structure; Wage Differentials
• Thema: payroll tax ; tax incidence ; firm heterogeneity

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bíró, Anikó ; Lindner, Attila ; Prinz, Daniel ; Branyiczki, Réka ; Márk, Lili
• Ereignis: Veröffentlichung
• (wer): Hungarian Academy of Sciences, Institute of Economics, Centre for Economic and Regional Studies
• (wo): Budapest
• (wann): 2022

Weitere Informationen

• Handle: http://hdl.handle.net/10419/282216
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ