The incidence of payroll taxation: Evidence from Chile

• 成果类型: Article; Proceedings Paper
• 署名作者: Gruber, J
• 署名单位: National Bureau of Economic Research
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/209877
• 发表日期: 1997
• 页码: S72-S101
• 关键词: benefits; wages

摘要

I provide new evidence on the incidence of payroll taxation by examining the experience of Chile before and after the privatization of its Social Security system. This policy change led to a sharp exogenous reduction in the payroll tax burden on Chilean firms; on average, payroll tax rates fell by 25% over 6 years. Using data from a census of manufacturing firms, I estimate that the incidence of payroll taxation is fully on wages, with no effect on employment. This finding is robust to a variety of empirical approaches to the problem measurement error in firm-level measures of taxes/worker.