Miao, Dingquan; Selin, Håkan; Söderström, Martin - 2022
We exploit a recent Swedish tax reform, implying higher marginal tax rates for the top 5% of the earnings distribution …, to learn about earnings responses in an economy where taxes already are high. Using a simple and graphical cross … sectional method, we estimate earnings elasticities in the range 0.13-0.16. We interpret the response using a simulation model …