We study a difference-in-differences (DiD) framework where groups experience unequal treatment statuses in the pre-policy change period. This approach is commonly employed in empirical studies but it contradicts the canonical model's assumptions. We show that in such settings, the standard DiD...

I study behavioral responses to changes in marginal tax rates of social security and income taxes. I find that responses depend on individual's employment status: whether a worker is a wage earner, self-employed, or a proprietor. In line with the existing literature I document weak (but...

Drawing on administrative panel data covering the full population of business owners in the UK, I study the effects of differential tax liabilities across organizational forms on business entry and on income shifting. I find that a 10% increase in savings from incorporation leads to a 1.7%...