Saez, Emmanuel; Matsaganis, Manos; Tsakloglou, Panos - National Bureau of Economic Research (NBER) - 2010
This paper analyzes the response of earnings to payroll tax rates using a cohort-based reform in Greece. All individuals who started working on or after 1993 face permanently a much higher earnings cap for payroll taxes, creating a large and permanent discontinuity in marginal payroll tax rates...