EconPapers    
Economics at your fingertips  
 

Payroll Taxes, Wages and Employment: Identification through Policy Changes

Guillermo Cruces, Sebastian Galiani and Susana Kidyba
Additional contact information
Susana Kidyba: Instituto Nacional de Estadística y Censos (INDEC) - Argentina

CEDLAS, Working Papers from CEDLAS, Universidad Nacional de La Plata

Abstract: This paper investigates the effect of changes in payroll taxes on wages and employment in Argentina. The analysis, based on administrative data, focuses on the impact of a series of major changes in payroll taxes which varied across geographical areas. This setup offers two main advantages over previous studies. First, using longitudinal data, the variation in tax rates across space and time provides a plausible source of identification of their effects on employment and wages. Second, the use of legal tax rates for each area at each point in time provides a remedy for the measurement error bias raised by the use of empirical rates constructed from observed tax and wage bills. Once this bias is accounted for, the results indicate that changes in payroll tax rates are only partially shifted onto wages, and they point to the absence of any significant effect on employment.

Keywords: Argentina; payroll taxes; employment; wages (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-pub
Date: 2010-01
References: Add references at CitEc
Citations: View citations in EconPapers (27) Track citations by RSS feed

Downloads: (external link)
http://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas93.pdf (application/pdf)

Related works:
Journal Article: Payroll taxes, wages and employment: Identification through policy changes (2010) Downloads
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:dls:wpaper:0093

Access Statistics for this paper

More papers in CEDLAS, Working Papers from CEDLAS, Universidad Nacional de La Plata Contact information at EDIRC.
Bibliographic data for series maintained by Ana Pacheco ().

 
Page updated 2019-05-17
Handle: RePEc:dls:wpaper:0093