Bryson, Alex;
Dale-Olsen, Harald;
(2025)
Job search under changing labour taxes.
Labour Economics
, 95
, Article 102750. 10.1016/j.labeco.2025.102750.
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Abstract
Workers’ job mobility decisions are related to firms’ wage policies but also depend on tax schedules. Using Norwegian population-wide administrative linked employer-employee data for 2010–2019, we study how the job-to-job turnover of employees is affected by marginal taxes and firms’ pay policies, thus drawing inferences on job search behaviour. By paying higher wages, job-to-job separation rates drop, but this negative relationship is weakened when income taxes increase, consistent with higher taxes reducing search activity. However, consistent with theory, the tax effect is smaller where workers receive performance bonuses.
| Type: | Article |
|---|---|
| Title: | Job search under changing labour taxes |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.labeco.2025.102750 |
| Publisher version: | https://doi.org/10.1016/j.labeco.2025.102750 |
| Language: | English |
| Additional information: | Copyright © 2025 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/). |
| Keywords: | Job search; Marginal taxes; Monopsony; Wages; Effort |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > School of Education UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education UCL > Provost and Vice Provost Offices > School of Education > UCL Institute of Education > IOE - Social Research Institute |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10209544 |
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