The Ability Gradient in Bunching

Daniel Waldenström and Spencer Bastani

No 14599, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We analyze the relationship between cognitive ability and bunching in the context of a large and salient kink point of the Swedish income tax schedule. Using population-wide register data from the Swedish military enlistment and administrative tax records, we find that high-ability individuals bunch more than low-ability individuals. This ability gradient is stronger for the self-employed, but is also present among wage earners. We also use high-school GPA and math grades to analyze gender differences, finding a stronger ability gradient among men.

Keywords: Bunching; Ability; Skills; Complexity; Optimal taxation (search for similar items in EconPapers)
JEL-codes: H21 H24 J22 J24 (search for similar items in EconPapers)
Date: 2020-04
New Economics Papers: this item is included in nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://cepr.org/publications/DP14599 (application/pdf)

Related works:
Working Paper: The Ability Gradient in Bunching (2020)
Working Paper: The Ability Gradient in Bunching (2020)
Working Paper: The Ability Gradient in Bunching (2020)
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:cpr:ceprdp:14599

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP14599

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().