Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
Clemens Fuest,
Andreas Peichl and
Sebastian Siegloch
No 241, ifo Working Paper Series from ifo Institute - Leibniz Institute for Economic Research at the University of Munich
Abstract:
This paper estimates the incidence of corporate taxes on wages using a 20-year panel of German municipalities exploiting 6,800 tax changes for identication. Using event study designs and differences-in-differences models, we find that workers bear about half of the total tax burden. Administrative linked employer-employee data allow us to estimate heterogeneous firm and worker effects. Our findings highlight the importace of labor market institutions and profit-shifting opportunities for the incidence of corporate taxes on wages. Moreover, we show that low-skilled, young and female employees bear a larger share of the tax burden. This has important distributive implications.
JEL-codes: H20 H70 J30 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-eur, nep-lma, nep-pbe and nep-pub
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Citations: View citations in EconPapers (7)
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https://www.ifo.de/DocDL/wp-2017-241-fuest-peichl-siegloch-corporate-taxes.pdf (application/pdf)
Related works:
Journal Article: Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany (2018) 
Working Paper: Do higher corporate taxes reduce wages? Micro evidence from Germany (2016) 
Working Paper: Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany (2013) 
Working Paper: Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany (2013) 
Working Paper: Do higher corporate taxes reduce wages? Micro evidence from Germany (2013) 
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ifowps:_241
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