The incidence of payroll taxation: Evidence from chile. 09 级劳动经济学 张素蓉. Background . Fact: the increase in payroll taxation burden … OECD countries: 19% to 25% from 1965-88 Sweden: 6% to 40% by the late from 1950 - 1970s
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
OECD countries: 19% to 25% from 1965-88
Sweden: 6% to 40% by the late from 1950 - 1970s
Or, does payroll tax certainly lead to labor market efficiency?
(w0, E0) TO (W1, E1)
The incidence :
elasticity of DL and SL
the minimum wage
shifting may not be possible
survey of manufacturing plants in Chile over 1979-1986
firm-level data( employees > 10)
Basic regression specification:
Cross-sectional regression: difference in difference
Average difference estimator: the difference of the average over the 1979-1980 period and the 1984-1985 period
1) Recession in the 1980s: wage decreased dramatically, unemployment increased, high inflation(25%)
Employers were mandated to give an 18% nominal wage rise due to the “privatization
The confounding influence of employee contributions:
reduction in tax rate causes an increase in employee’s contribution
w may include employee’s contribution, when (dw/w)/dtewould NOT be zero!