The Effets of Payroll Tax Subsidies for Low Wage Workers on Firms Level Decisions
We study the effect of the large increase of payroll tax subsidies for low-wage workersthat occurred in France in 1995. We compute the ex ante changes in average labor costs in1994 solely due to the changes in the tax subsidies and consider it as a treatment variable.We extend the Rubin causal framework to the case of a continuous treatment, define theensuing parameters of interest and generalize the propensity score property. We find thatpayroll tax subsidies had a strong effects on employment and on other firms outcomes,stock of capital, share of unskilled workers and average labor cost.
Year of publication: |
2003
|
---|---|
Authors: | Crépon, Bruno ; Desplatz, Rozenn |
Institutions: | Centre de Recherche en Économie et Statistique (CREST), Groupe des Écoles Nationales d'Économie et Statistique (GENES) |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment
Crépon, Bruno, (2012)
-
Training the Unemployed in France : How does it Affect Unemployment Duration and Recurrence ?
Crépon, Bruno, (2007)
-
Wages, Productivity and Worker Characteristics : A French Perspective
Crépon, Bruno, (2003)
- More ...