Tax Reforms and Intertemporal Shifting of Wage Income: Evidence from Danish Monthly Payroll Records
Loading...
Files
Size: 882.34 KB, File format: Adobe PDF
Date
Authors
Skov Ebbesen, S
Kreiner, C. T.
Leth-Petersen, S.
Supervisor
Item type
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
American Economic Association (AEA)
Abstract
This paper uses monthly payroll records for all Danish employees
to identify widespread intertemporal shifting of labor income in
response to a tax reform that significantly reduced the marginal tax
rates for one-fourth of all employees. When ignoring shifting, the
estimate of the overall elasticity of taxable income equals 0.1, and
the elasticity is increasing with earnings. When removing the shifting
component, the elasticity is close to zero at all earnings levels.
The evidence also indicates that tax salience, liquidity constraints
and firm willingness to cooperate in shifting are important factors in
explaining shifting behavior
Description
Keywords
Source
American Economic Journal: Economic Policy 2016, 8(3): 233–257, doi: 10.1257/pol.20140233
Publisher's version
Rights statement
The author has the right to republish, post on servers, redistribute to lists and use any component of this work in other works. For others to do so requires prior specific permission and/or a fee. Permissions may be requested from the American Economic Association Administrative Office by going to the Contact Us form and choosing "Copyright/Permissions Request" from the menu.