EconPapers    
Economics at your fingertips  
 

The Ability Gradient in Bunching

Spencer Bastani () and Daniel Waldenström ()

No 13141, IZA Discussion Papers from Institute of Labor Economics (IZA)

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)
Pages: 33 pages
Date: 2020-04
New Economics Papers: this item is included in nep-lma and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://ftp.iza.org/dp13141.pdf (application/pdf)

Related works:
Working Paper: The Ability Gradient in Bunching (2020) Downloads
Working Paper: The Ability Gradient in Bunching (2020) Downloads
Working Paper: The Ability Gradient in Bunching (2020) 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:iza:izadps:dp13141

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2021-10-23
Handle: RePEc:iza:izadps:dp13141