Replication data for: Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany

Principal Investigator(s):  View help for Principal Investigator(s) Clemens Fuest; Andreas Peichl; Sebastian Siegloch

Version:  View help for Version V1

Name File Type Size Last Modified
  codes_final_AER 10/19/2021 03:28:PM
LICENSE.txt text/plain 14.6 KB 10/11/2019 08:47:PM

Project Citation: 

Fuest, Clemens, Peichl, Andreas, and Siegloch, Sebastian. Replication data for: Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E112920V1

Project Description

Summary:  View help for Summary This paper estimates the incidence of corporate taxes on wages using a 20-year panel of German municipalities exploiting 6,800 tax changes for identification. Using event study designs and difference-in-differences models, we find that workers bear about one-half of the total tax burden. Administrative linked employer-employee data allow us to estimate heterogeneous firm and worker effects. Our findings highlight the importance of labor market institutions and profit-shifting opportunities for the incidence of corporate taxes on wages. Moreover, we show that low-skilled, young, and female employees bear a larger share of the tax burden. This has important distributive implications.

Scope of Project

Subject Terms:  View help for Subject Terms quasi-experimental research design; tax reforms; event study
JEL Classification:  View help for JEL Classification
      H25 Business Taxes and Subsidies including sales and value-added (VAT)
      H31 Fiscal Policies and Behavior of Economic Agents: Household
      H71 State and Local Taxation, Subsidies, and Revenue
      J16 Economics of Gender; Non-labor Discrimination
      J24 Human Capital; Skills; Occupational Choice; Labor Productivity
      J31 Wage Level and Structure; Wage Differentials
Geographic Coverage:  View help for Geographic Coverage Germany
Time Period(s):  View help for Time Period(s) 1993 – 2012
Universe:  View help for Universe Universe of German municipalities, 1% representative sample of German plants and all workers in theses plants (6% of all employees subject to social security).
Data Type(s):  View help for Data Type(s) administrative records data; aggregate data

Methodology

Data Source:  View help for Data Source Linked employer-emplyee data LIAB provided by the Institute of Employment Research (IAB). Municipal data (partly hand collected) provided by Statistical Offices of the Laender.
Unit(s) of Observation:  View help for Unit(s) of Observation individuals, firms, municipalities,

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V1 [2019-10-12]

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