Employment and Wage Effects of a Payroll-Tax Cut-Evidence from a Regional Experiment

• Main Authors: Korkeamäki, Ossi, Uusitalo, Roope
• Format: Other/Unknown Material
• Language: English
• Published: Valtion taloudellinen tutkimuskeskus VATT 2008
• Subjects: Payroll-tax; Labor demand; Tax incidence; Propensity score matching; Labour market; Työmarkkinat; Regional development; Aluekehitys; Taxation; Verotus; Labor market and policies promoting economic growth; Työmarkkinat ja kasvua tukeva politiikka; Nousu; Tukeva; Northern Finland
• Online Access: http://www.doria.fi/handle/10024/148431

In this paper we evaluate the effects of a regional experiment that reduced payroll-taxes by 3–6 percentage points for three years in Northern Finland. We match each firm in the target region with a similar firm in a comparison region and estimate the effect of the payroll-tax reduction by comparing...