Conventional wisdom states that the statutory split of payroll taxation between firms and workers is of no macroeconomic relevance, because the tax incidence is fully determined by the market structure. This paper breaks with this view by establishing a theoretical link between the statutory...

Despite the importance of payroll taxes, and the clear defects in the rules, legislative proposals for change are limited, addressing primarily the lack of parity between a small service business carried on by an S corporation and directly or through a partnership. This report argues for more...

Recent empirical literature documents that targeted tax reductions or minimum wages can have unintended reallocation and spillover effects on workers not directly targeted by these policies. We quantify these effects using an equilibrium search-and-matching model estimated on French data before...