Language:
English
Pages:
1 Online-Ressource (108 pages)
Parallel Title:
Erscheint auch als Biro, Aniko Firm Heterogeneity and the Impact of Payroll Taxes
Keywords:
Employment and Unemployment
;
Employment of Older Workers
;
Firm Hetrogeneity
;
Labor and Employment Law
;
Labor Market
;
Law and Development
;
Macroeconomics and Economic Growth
;
Older Workers
;
Payroll Tax
;
Social Protections and Labor
;
Tax Incidence
;
Tax Law
;
Taxation and Subsidies
;
Unemployment
Abstract:
This paper studies the impact of a large payroll tax cut for older workers in Hungary. Motivated by the predictions of a standard equilibrium job search model, the paper examines the heterogeneous impact of the policy. Employment increases most at low-productivity firms offering low-wage jobs, which tend to hire from unemployment, while the effects are more muted for high-productivity firms offering high-wage jobs. At the same time, wages only increase at high-productivity firms. These results point to important heterogeneity in the incidence of payroll tax cuts across firms and highlight that payroll taxes have a significant impact on the composition of jobs in the labor market
DOI:
10.1596/1813-9450-10265
Permalink
