dc.contributor.author
Dwenger, Nadja
dc.contributor.author
Rattenhuber, Pia
dc.contributor.author
Steiner, Viktor
dc.date.accessioned
2018-06-08T10:17:50Z
dc.date.available
2011-12-15T11:36:30.649Z
dc.identifier.uri
https://refubium.fu-berlin.de/handle/fub188/20200
dc.identifier.uri
http://dx.doi.org/10.17169/FUDOCS_document_000000012615
dc.description.abstract
This study assesses the burden of capital income tax passed onto labor through
wage bargaining over economic rents, using estimations based on a unique
pseudo-panel data set from Germany for the period 1998 to 2006. Tax return
data cover the universe of corporations subject to corporate income tax, and
labor market variables reflect the full record of employees covered by Social
Security. We find that wage bargaining after a reduction in tax rates does not
increase the wage bill if employment effects neglected by previous empirical
studies are taken into account. Any increase in the total wage bill by higher
wage rates set is equally compensated for by lower levels of employment. If
adjustments in employment due to the increased user cost of capital are taken
into account, a cut in corporate income taxes by 1 euro increases the wage
bill by 0.47 euro. The identification of these effects comes from variation in
the firm-specific average corporate tax rate across firms and over time
resulting from two substantial tax reforms. The endogeneity of the
firmspecific tax rate is controlled for by an instrumental variable approach.
The instrument for the observed average tax rate is the counterfactual tax
rate that a corporation would have faced in a particular period, had there
been no endogenous change of its tax base, constructed using a detailed
microsimulation model.
de
dc.relation.ispartofseries
urn:nbn:de:kobv:188-fudocsseries000000000315-0
dc.relation.ispartofseries
urn:nbn:de:kobv:188-fudocsseries000000000006-7
dc.rights.uri
http://www.fu-berlin.de/sites/refubium/rechtliches/Nutzungsbedingungen
dc.subject
wage determination
dc.subject
corporate income taxation
dc.subject
corporate tax return data
dc.subject.ddc
300 Sozialwissenschaften::330 Wirtschaft::336 Öffentliche Finanzen
dc.title
Sharing the burden
dc.title.subtitle
empirical evidence on corporate tax incidence
refubium.affiliation
Wirtschaftswissenschaft
de
refubium.affiliation.other
Institut für Wirtschaftspolitik und Wirtschaftsgeschichte
refubium.mycore.fudocsId
FUDOCS_document_000000012615
refubium.series.issueNumber
2011,19 : Economics
refubium.series.name
Diskussionsbeiträge des Fachbereichs Wirtschaftswissenschaft der Freien Universität Berlin
refubium.mycore.derivateId
FUDOCS_derivate_000000001794
dcterms.accessRights.openaire
open access