Personal Taxes and Firm Skill Hiring: Evidence from 27 Million Job Postings

• 成果类型: Article
• 署名作者: Campello, Murillo; Gao, Janet; Xu, Qiping
• 署名单位: Cornell University; National Bureau of Economic Research; Georgetown University; University of Illinois System; University of Illinois Urbana-Champaign
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2022.01211
• 发表日期: 2024
• 页码: 7215-7241
• 关键词: state tax policy; personal income taxes; Skilled labor; firm organizational form; local labor markets

摘要

Using big data on U.S. job postings, we show that firms increase skill requirements when hiring workers in states that cut personal income taxes. We trace a significant driver of this effect to companies' reallocation of skilled job postings across states based on tax differentials. The tax-induced upskilling is observed within occupations and is more pronounced for high-skill positions within firms. It is accompanied and amplified by concurrent increases in information technology expenditures at local-level establishments. In characterizing the mechanism at play, we show that job upskilling is triggered by tax changes affecting middle- and upper middle-class workers. It is pronounced for highgrowth firms, for firms in tradable industries, and in urban areas, but it is mitigated among profitable firms. A narrative-based analysis helps us establish causal inferences.