Fiscal policies and the prices of labor: a comparison of the U.K. and U.S

Casey Mulligan

IZA Journal of Labor Policy, 2015, vol. 4, issue 1, 1-27

Abstract: This paper measures the 2007–13 evolution of employment tax rates in the U.K. and the U.S. The U.S. changes are greater, in the direction of taxing a greater fraction of the value created by employment, and primarily achieved with new implicit tax rates. Even though both countries implemented a 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 “austerity” period. Tax rate measurements are a first ingredient for cross-country comparisons of labor markets during and after the financial crisis. Copyright Mulligan. 2015

Keywords: E24; H31; I38; J22; Marginal tax rates; Employment; International comparisons (search for similar items in EconPapers)
Date: 2015
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Working Paper: Fiscal Policies and the Prices of Labor: A Comparison of the U.K. and U.S (2015)
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DOI: 10.1186/s40173-015-0049-2

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