Arbeitspapier
Do higher corporate taxes reduce wages? Micro evidence from Germany
This paper estimates the incidence of corporate taxes on wages using a 20-year panel of German municipalities. Administrative linked employer-employee data allows estimating heterogeneous worker and firm effects. We set up a general theoretical framework showing that corporate taxes can have a negative effect on wages in various labor market models. Using an event study design, we test the predictions of the theory. Our results indicate that workers bear about 40% of the total tax burden. Empirically, we confirm the importance of both labor market institutions and profit shifting possibilities for the incidence of corporate taxes on wages.
- Language
-
Englisch
- Bibliographic citation
-
Series: ZEW Discussion Papers ; No. 16-003
- Classification
-
Wirtschaft
- Subject
-
business tax
wage incidence
administrative data
local taxation
- Event
-
Geistige Schöpfung
- (who)
-
Fuest, Clemens
Peichl, Andreas
Siegloch, Sebastian
- Event
-
Veröffentlichung
- (who)
-
Zentrum für Europäische Wirtschaftsforschung (ZEW)
- (where)
-
Mannheim
- (when)
-
2016
- Handle
- URN
-
urn:nbn:de:bsz:180-madoc-406328
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the 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
- Fuest, Clemens
- Peichl, Andreas
- Siegloch, Sebastian
- Zentrum für Europäische Wirtschaftsforschung (ZEW)
Time of origin
- 2016
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Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
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