Tax reform, wages, and employment: Evidence from Ohio

Eliakim Kakpo

MPRA Paper from University Library of Munich, Germany

Abstract: This paper evaluates the incidence of a natural experiment entailed by the 2005 Ohio tax reform. The policy reduced the corporate and personal income taxes over the period 2006-2010. I observe several cross-sections of the Current Population Survey and compare individuals in Ohio to similar individuals in Pennsylvania. Using a triple difference identification approach, I conclude that the reform significantly boosted labor force participation for women, specifically those with 5-year-old children and increased reported self-employment taxable earnings. However, it does not seem to have had a positive impact on corporate wages in the short-run.

Keywords: Tax incidence; Income tax; Corporate tax; Self-employment; Wages; Employment (search for similar items in EconPapers)
JEL-codes: H20 H24 H25 (search for similar items in EconPapers)
Date: 2018-08
New Economics Papers: this item is included in nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:94987

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