The Impact of COVID-19 on Formal Firms: Micro Tax Data Simulations across Countries

Bachas, Pierre; Brockmeyer, Anne; Semelet, Camille

doi:10.1596/1813-9450-9437

Cited by 25 publications

(28 citation statements)

References 8 publications

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“…This definition of cash flow loss corresponds to a short-run perspective in which overhead costs, such as building leases and debt payments, are fixed. 22 This assumption is used in Bachas et al (2020) and underpins the need to inject liquidity into firms, since if firms could temporarily scale back their overhead, there would be little need for firm liquidity injections.…”

Section: Sales Shocks From Vat Transactionsmentioning

confidence: 99%

“…Windfall gains: Despite the inherent targeting features of payroll tax cuts (by firm size and affected sectors), still substantial amounts of the subsidy flow to infra-marginal firms. In a back-of-the-envelope exercise (following Bachas et al (2020)), we infer that almost 70% of the total tax reduction could be directed toward firms that would have remained in positive profits in the absence of government intervention.…”

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confidence: 97%

“…Our work contributes to several strands in the evolving literature on governmental responses to COVID-19. The first comprises studies using pre-2020 administrative data to project the distribution of fiscal relief (Alstadsaeter et al, 2020;Ganong et al, 2020;Bachas et al, 2020). A second strand analyzes various forms of job retention subsidies (Bartik et al, 2020;Bennedsen et al, 2020;Birinci et al, 2021;Chetty et al, 2020;Granja et al, 2020;Kaplan et al, 2020).…”

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confidence: 99%

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How well-targeted are payroll tax cuts as a response to COVID-19? evidence from China

Cui

Hicks

Norton

2022

Int Tax Public Finance

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Numerous countries cut payroll taxes in response to COVID-19, including China, which reduced employer contributions by up to 21 percentage points. We use administrative data on more than 800,000 Chinese firms to evaluate payroll tax cuts as a business relief measure. We estimate that the tax cuts cover 31.5% of the decline in business cash flow, but labor informality causes 53% of registered firms-24% of aggregate economic activity-to receive no benefits at all. We quantify the targeting of the policy in terms of how much benefits flow to small firms less able to access external finance and to sectors worse hit by COVID-19. We find that (1) small firms and vulnerable industries are comparatively more labor intensive, which leads to desirable targeting; (2) labor informality worsens, but does not eliminate, targeting by firm size; and (3) labor informality is uncorrelated with the COVID-19 shock, and therefore does not affect targeting by sector. Supplementary Information The online version contains supplementary material available at 10.1007/s10797-022-09746-w.

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Section: Sales Shocks From Vat Transactionsmentioning

confidence: 99%

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confidence: 97%

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confidence: 99%

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How well-targeted are payroll tax cuts as a response to COVID-19? evidence from China

Cui

Hicks

Norton

2022

Int Tax Public Finance

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“…According to research by the World Bank and other several sources, the economic crisis caused by the COVID-19 pandemic severely reduced mobility and economic activity [5][6][7][8][9][10][11][12]. In 2021, the World Bank estimated the crisis' impact on labor markets in 39 countries from April to July 2020.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Managerial Competences Transformation in the Polish Energy Industry

Pilipczuk¹

2021

Energies

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Different technological, socio-economic, geopolitical, and demographic factors have a significant influence on labor markets. Currently, due to COVID-19, the global economy is in a challenging situation, and millions of people from different countries have lost their jobs. The employee’s mental health and well-being are in risk conditions. In the coming years, the Polish energy sector will face several transformations. Emerging technologies are intended to deal with the problems in energy management. One of the main industry forces is human capital, people who will be able to project and manage the innovative technologies. Thus, this paper examines the determinants of managerial competences transformation in the energy industry from the labor market perspective. The paper fulfills the research gap in the energy manager profession’s transformation in Poland. The aim of the paper was to present the current state of the energy manager profession in Poland. Two methodological approaches were used: the theoretical and practical approaches. Descriptive statistics are provided to present the labor market research results. The findings of the research can contribute to the literature and practice by applying them in the process of developing energy manager competency models, as well as in education programs and training courses for enterprises and universities.

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“…This paper contributes to the emerging and rapidly growing literature on the economic impacts of COVID-19 on businesses [Bartik et al, 2020, Bachas et al, 2020, Chetty et al, 2020, Apedo-Amah et al, 2020. The paper is closely related to Bachas et al [2020] who utilize administrative corporate tax records from 10 low-and middle-income economies and show that that firms in poorer countries are relatively less impacted on different dimensions. Our paper builds on the results of these studies by providing the first detailed analysis of the impact on African firms using short business surveys.…”

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confidence: 99%

COVID-19 and African Firms: Impact and Coping Strategies

Aga¹,

Maemir²

2021

Policy Research Working Papers

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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The Impact of COVID-19 on Formal Firms: Micro Tax Data Simulations across Countries

Cited by 25 publications

References 8 publications

How well-targeted are payroll tax cuts as a response to COVID-19? evidence from China

How well-targeted are payroll tax cuts as a response to COVID-19? evidence from China

Determinants of Managerial Competences Transformation in the Polish Energy Industry

COVID-19 and African Firms: Impact and Coping Strategies

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