Tax progressivity and R&D employment

Diego d'Andria

MPRA Paper from University Library of Munich, Germany

Abstract: We study the relationship between tax progressivity and the size of the R&D workforce, using a panel of European countries in 2000-2019. We review the theoretical literature which provides opposing predictions about such a relationship. We then demonstrate that such relationship exists as a "within" effect, it is negative, meaning that a larger tax progressivity is associated with smaller shares of employment in R&D activities, and it remains statistically significant after performing a number of robustness tests. Differently to previous studies based on patenting inventors, we find no effect due to top tax rates on the size of R&D employment.

Keywords: Tax progressivity; R&D; Labour force structure (search for similar items in EconPapers)
JEL-codes: H24 J21 J24 O3 (search for similar items in EconPapers)
Date: 2024-01
New Economics Papers: this item is included in nep-ino, nep-pbe, nep-pub and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:120937

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