Fiscal Policies and the Prices of Labor: A Comparison of the U.K. and U.S

Casey Mulligan

No 21358, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper measures the 2007-13 evolution of employment tax rates in the U.K. and the U.S., especially as they are influenced by changes in tax and safety net benefit rules. The magnitudes of the U.S. changes are greater, in the direction of taxing a greater fraction of the value created by employment, and primarily achieved with changes in implicit tax rates. Even though both countries implemented temporary “fiscal stimulus,” their tax rate dynamics were different: the U.S. stimulus increased rates whereas the U.K. stimulus reduced them. The U.K. later increased the tax on employment during its so-called “austerity” period. Employer-cost dynamics are also different in the two countries. The tax rates calculated in this paper are a first ingredient for cross-country comparisons of labor market and fiscal policy dynamics during and after the financial crisis.

JEL-codes: E24 H31 I38 (search for similar items in EconPapers)
Date: 2015-07
New Economics Papers: this item is included in nep-mac
Note: EFG PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Casey B. Mulligan, 2015. "Fiscal policies and the prices of labor: a comparison of the U.K. and U.S.," IZA Journal of Labor Policy, vol 4(1).

Downloads: (external link)
http://www.nber.org/papers/w21358.pdf (application/pdf)

Related works:
Journal Article: Fiscal policies and the prices of labor: a comparison of the U.K. and U.S (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:21358

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w21358

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().