Employment effects of a payroll-tax cut: Evidence from a regional tax exemption experiment
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 the control region and estimate the effect of the payroll-tax reduction by comparing...
Main Authors: | , |
---|---|
Format: | Report |
Language: | English |
Published: |
Uppsala: Institute for Labour Market Policy Evaluation (IFAU)
2006
|
Subjects: | |
Online Access: | http://hdl.handle.net/10419/78663 |
id |
ftzbwkiel:oai:econstor.eu:10419/78663 |
---|---|
record_format |
openpolar |
spelling |
ftzbwkiel:oai:econstor.eu:10419/78663 2024-01-07T09:45:27+01:00 Employment effects of a payroll-tax cut: Evidence from a regional tax exemption experiment Korkeamäki, Ossi Uusitalo, Roope 2006 http://hdl.handle.net/10419/78663 eng eng Uppsala: Institute for Labour Market Policy Evaluation (IFAU) Series: Working Paper No. 2006:10 gbv-ppn:518892727 http://hdl.handle.net/10419/78663 http://www.econstor.eu/dspace/Nutzungsbedingungen ddc:330 J18 J23 J38 J58 J65 J68 Payroll-tax Labour demand Tax incidence Propensity score matching Lohnsummensteuer Arbeitsnachfrage Schätzung Finnland doc-type:workingPaper 2006 ftzbwkiel 2023-12-11T00:44:38Z 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 the control region and estimate the effect of the payroll-tax reduction by comparing employment and wage changes within the matched pairs before and after the start of the experiment. According to our results the reduction in the payroll-taxes led to somewhat faster wage growth in the target region. The increase in wages offset roughly half of the impact of the payroll tax cut on the labour costs. The remaining labour cost reduction had no significant effects on employment. Report Northern Finland EconStor (German National Library of Economics, ZBW) |
institution |
Open Polar |
collection |
EconStor (German National Library of Economics, ZBW) |
op_collection_id |
ftzbwkiel |
language |
English |
topic |
ddc:330 J18 J23 J38 J58 J65 J68 Payroll-tax Labour demand Tax incidence Propensity score matching Lohnsummensteuer Arbeitsnachfrage Schätzung Finnland |
spellingShingle |
ddc:330 J18 J23 J38 J58 J65 J68 Payroll-tax Labour demand Tax incidence Propensity score matching Lohnsummensteuer Arbeitsnachfrage Schätzung Finnland Korkeamäki, Ossi Uusitalo, Roope Employment effects of a payroll-tax cut: Evidence from a regional tax exemption experiment |
topic_facet |
ddc:330 J18 J23 J38 J58 J65 J68 Payroll-tax Labour demand Tax incidence Propensity score matching Lohnsummensteuer Arbeitsnachfrage Schätzung Finnland |
description |
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 the control region and estimate the effect of the payroll-tax reduction by comparing employment and wage changes within the matched pairs before and after the start of the experiment. According to our results the reduction in the payroll-taxes led to somewhat faster wage growth in the target region. The increase in wages offset roughly half of the impact of the payroll tax cut on the labour costs. The remaining labour cost reduction had no significant effects on employment. |
format |
Report |
author |
Korkeamäki, Ossi Uusitalo, Roope |
author_facet |
Korkeamäki, Ossi Uusitalo, Roope |
author_sort |
Korkeamäki, Ossi |
title |
Employment effects of a payroll-tax cut: Evidence from a regional tax exemption experiment |
title_short |
Employment effects of a payroll-tax cut: Evidence from a regional tax exemption experiment |
title_full |
Employment effects of a payroll-tax cut: Evidence from a regional tax exemption experiment |
title_fullStr |
Employment effects of a payroll-tax cut: Evidence from a regional tax exemption experiment |
title_full_unstemmed |
Employment effects of a payroll-tax cut: Evidence from a regional tax exemption experiment |
title_sort |
employment effects of a payroll-tax cut: evidence from a regional tax exemption experiment |
publisher |
Uppsala: Institute for Labour Market Policy Evaluation (IFAU) |
publishDate |
2006 |
url |
http://hdl.handle.net/10419/78663 |
genre |
Northern Finland |
genre_facet |
Northern Finland |
op_relation |
Series: Working Paper No. 2006:10 gbv-ppn:518892727 http://hdl.handle.net/10419/78663 |
op_rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
_version_ |
1787426991805300736 |