Do place-based tax incentives create jobs?

• 成果类型: Article
• 署名作者: Ku, Hyejin; Schonberg, Uta; Schreiner, Ragnhild C.
• 署名单位: University of London; University College London; University of Oslo
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2019.104105
• 发表日期: 2020
• 关键词: Place-based policies; payroll taxes; Regional tax incentives; labor cost; Firm behavior

摘要

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 aswell as a significant decline in local employment. These findings suggest that in settingswith some degrees of wage rigidity, place-based payroll tax incentives can be effective in stimulating local employment. (c) 2020 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http:// creativecommons.org/licenses/by-nc-nd/4.0/).