UCL Discovery
UCL home » Library Services » Electronic resources » UCL Discovery

Do place-based tax incentives create jobs?

Ku, H; Schoenberg, U; Schreiner, R; (2020) Do place-based tax incentives create jobs? Journal of Public Economics , Article 104105. 10.1016/j.jpubeco.2019.104105. (In press). Green open access

[thumbnail of Ku_1-s2.0-S0047272719301665-main.pdf]
Preview
Text
Ku_1-s2.0-S0047272719301665-main.pdf - Published version

Download (1MB) | Preview

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.

Type: Article
Title: Do place-based tax incentives create jobs?
Open access status: An open access version is available from UCL Discovery
DOI: 10.1016/j.jpubeco.2019.104105
Publisher version: https://doi.org/10.1016/j.jpubeco.2019.104105
Language: English
Additional information: This is an open access article under the CC BY-NC-ND license (http:// creativecommons.org/licenses/by-nc-nd/4.0/).
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10077362
Downloads since deposit
31Downloads
Download activity - last month
Download activity - last 12 months
Downloads by country - last 12 months

Archive Staff Only

View Item View Item