The direct incidence of corporate income tax on wages.
A stylised model is provided to show how the direct effect of corporate income tax on wages can be identified in a bargaining framework using cross-company variation in tax liabilities, conditional on value added per employee. Using data on 55,082 companies located in nine European countries over th...
| Main Authors: | , , |
|---|---|
| 格式: | Journal article |
| 语言: | English |
| 出版: |
Elsevier
2012
|
| _version_ | 1826281240886509568 |
|---|---|
| author | Arulampalam, W Devereux, M Maffini, G |
| author_facet | Arulampalam, W Devereux, M Maffini, G |
| author_sort | Arulampalam, W |
| collection | OXFORD |
| description | A stylised model is provided to show how the direct effect of corporate income tax on wages can be identified in a bargaining framework using cross-company variation in tax liabilities, conditional on value added per employee. Using data on 55,082 companies located in nine European countries over the period 1996-2003, we estimate the long run elasticity of the wage bill with respect to taxation to be -0.093. Evaluated at the mean, this implies that an exogenous rise of $1 in tax would reduce the wage bill by 49 cents. Only a weak evidence of a difference for multinational companies is found. |
| first_indexed | 2024-03-07T00:25:50Z |
| format | Journal article |
| id | oxford-uuid:7e17b94e-37f5-4d6c-b938-101e9cec528a |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T00:25:50Z |
| publishDate | 2012 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:7e17b94e-37f5-4d6c-b938-101e9cec528a2022-03-26T21:08:05ZThe direct incidence of corporate income tax on wages.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:7e17b94e-37f5-4d6c-b938-101e9cec528aEnglishDepartment of Economics - ePrintsElsevier2012Arulampalam, WDevereux, MMaffini, GA stylised model is provided to show how the direct effect of corporate income tax on wages can be identified in a bargaining framework using cross-company variation in tax liabilities, conditional on value added per employee. Using data on 55,082 companies located in nine European countries over the period 1996-2003, we estimate the long run elasticity of the wage bill with respect to taxation to be -0.093. Evaluated at the mean, this implies that an exogenous rise of $1 in tax would reduce the wage bill by 49 cents. Only a weak evidence of a difference for multinational companies is found. |
| spellingShingle | Arulampalam, W Devereux, M Maffini, G The direct incidence of corporate income tax on wages. |
| title | The direct incidence of corporate income tax on wages. |
| title_full | The direct incidence of corporate income tax on wages. |
| title_fullStr | The direct incidence of corporate income tax on wages. |
| title_full_unstemmed | The direct incidence of corporate income tax on wages. |
| title_short | The direct incidence of corporate income tax on wages. |
| title_sort | direct incidence of corporate income tax on wages |
| work_keys_str_mv | AT arulampalamw thedirectincidenceofcorporateincometaxonwages AT devereuxm thedirectincidenceofcorporateincometaxonwages AT maffinig thedirectincidenceofcorporateincometaxonwages AT arulampalamw directincidenceofcorporateincometaxonwages AT devereuxm directincidenceofcorporateincometaxonwages AT maffinig directincidenceofcorporateincometaxonwages |