Payroll Taxes, Firm Behavior, and Rent Sharing: Evidence from a Young Workers' Tax Cut in Sweden

Abstract

, as well as numerous seminar and conference participants for helpful discussions and comments. Sam Karlin, Carl McPherson and Nina Roussille provided outstanding research assistance. We acknowledge financial support from NSF Grant SES-1559014; the Center for Equitable Growth at UC Berkeley, and FORTE Grant 2015-00490. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Payroll Taxes, Firm Behavior, and Rent Sharing: Evidence from a Young Workers' Tax Cut in Sweden

“…In other contexts, some quasi-experimental studies also find limited or no incidence (e.g., Kugler and Kugler 2009 and Becerra 2017 for Colombia; Saez, Matsaganis, and Tsakloglou 2012 for Greece; Bozio, Breda, and Grenet 2017 and Cahuc, Carcillo, and Le Barbanchon 2014 for France). We provide a more detailed comparison with previous work in the working paper version of our study, Saez, Schoefer, and Seim (2017). 5 Our employment results are also consistent with the earlier work by Skedinger (2014) who focuses on the retail sector and Egebark andKaunitz (2013, 2018) who use individual-based difference-in-differences regressions with controls.…”

Cross‐Country Evidence on Labor Market Institutions and Young Adult Employment through the Financial Crisis

“…This article's analysis shows that labor market institutions and their interactions with changes in macroeconomic conditions correlate strongly with cross‐country developments in young adult labor markets. Recent analyses from Denmark (Kreiner, Reck, and Skov Forthcoming), Greece (Yannelis ), Sweden (Saez, Schoefer, and Seim Forthcoming), and the United States (Clemens and Wither ) provide complementary evidence that youth and/or young adult employment tends to be higher, all else equal, when its cost to firms is lower. The evidence in these studies is thus consistent with the current article's hypothesis that the rigidity of labor costs significantly shaped young adult employment outcomes during the global financial crisis.…”

Tax policies for inclusive growth in a changing world

“…However, some studies have argued that increased personal taxation of those with high levels of income and wealth can be beneficial from an efficiency perspective. Higher income taxes at the top of the distribution can be effective where top incomes are due to economic rents (Piketty and Saez, 2012 [51]), market failure (Bivens and Mishel, 2013 [52]), or where responses to taxation result in shifts in the form of compensation but not reductions in effort (Rubolino and Waldenström, 2017 [53]; Goolsbee, 2000 [54]).…”