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- Publisher Website: 10.1016/j.jpubeco.2019.104105
- Scopus: eid_2-s2.0-85078009254
- WOS: WOS:000579860600002
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Article: Do place-based tax incentives create jobs?
Title | Do place-based tax incentives create jobs? |
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Authors | |
Keywords | Firm behavior Labor cost Payroll taxes Place-based policies Regional tax incentives |
Issue Date | 2020 |
Citation | Journal of Public Economics, 2020, v. 191, article no. 104105 How to Cite? |
Abstract | In this paper, we evaluate the effectiveness of place-based payroll taxes in stimulating local employment by exploiting a unique policy setting in Norway, where a system of geographically differentiated payroll taxes was suddenly abolished due to an EU regulation. The reform was enforced independently of the regional labor market developments, creating arguably exogenous variation in the payroll tax rates that firms in different local labor markets faced over time. We find evidence of partial shifting of payroll tax increases on to worker wages as well as a significant decline in local employment. These findings suggest that in settings with some degrees of wage rigidity, place-based payroll tax incentives can be effective in stimulating local employment. |
Persistent Identifier | http://hdl.handle.net/10722/330628 |
ISSN | 2023 Impact Factor: 4.8 2023 SCImago Journal Rankings: 5.144 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Ku, Hyejin | - |
dc.contributor.author | Schönberg, Uta | - |
dc.contributor.author | Schreiner, Ragnhild C. | - |
dc.date.accessioned | 2023-09-05T12:12:28Z | - |
dc.date.available | 2023-09-05T12:12:28Z | - |
dc.date.issued | 2020 | - |
dc.identifier.citation | Journal of Public Economics, 2020, v. 191, article no. 104105 | - |
dc.identifier.issn | 0047-2727 | - |
dc.identifier.uri | http://hdl.handle.net/10722/330628 | - |
dc.description.abstract | In this paper, we evaluate the effectiveness of place-based payroll taxes in stimulating local employment by exploiting a unique policy setting in Norway, where a system of geographically differentiated payroll taxes was suddenly abolished due to an EU regulation. The reform was enforced independently of the regional labor market developments, creating arguably exogenous variation in the payroll tax rates that firms in different local labor markets faced over time. We find evidence of partial shifting of payroll tax increases on to worker wages as well as a significant decline in local employment. These findings suggest that in settings with some degrees of wage rigidity, place-based payroll tax incentives can be effective in stimulating local employment. | - |
dc.language | eng | - |
dc.relation.ispartof | Journal of Public Economics | - |
dc.subject | Firm behavior | - |
dc.subject | Labor cost | - |
dc.subject | Payroll taxes | - |
dc.subject | Place-based policies | - |
dc.subject | Regional tax incentives | - |
dc.title | Do place-based tax incentives create jobs? | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jpubeco.2019.104105 | - |
dc.identifier.scopus | eid_2-s2.0-85078009254 | - |
dc.identifier.volume | 191 | - |
dc.identifier.spage | article no. 104105 | - |
dc.identifier.epage | article no. 104105 | - |
dc.identifier.isi | WOS:000579860600002 | - |