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The Taxing Deed of Globalization

Peter Egger (), Sergey Nigai () and Nora Strecker ()

American Economic Review, 2019, vol. 109, issue 2, 353-90

Abstract: This paper examines the effects of globalization on the distribution of worker-specific labor taxes using a unique set of tax calculators. We find a differential effect of higher trade and factor mobility on relative tax burdens in 1980–1993 versus 1994–2007 in the OECD. Prior to 1994, greater openness meant that higher income earners were taxed progressively more. However, after 1994, we document a globalization-induced rise in the labor income tax burden of the middle class, while the top 1 percent of workers and employees faced a reduction in their tax burden of 0.59–1.45 percentage points.

JEL-codes: D31 F16 F61 H22 H24 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/aer.20160600
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Working Paper: The Taxing Deed of Globalization (2016) Downloads
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Handle: RePEc:aea:aecrev:v:109:y:2019:i:2:p:353-90