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distributions. The approach exploits discontinuities in earnings distributions at kinks in the budget set which are informative … discontinuities at most earnings caps of SSC in the distribution of observed net earnings. Together with smooth gross earnings …
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This paper provides evidence over a long time period on the question of who bears the burden of social security contributions (SSC) in Germany. Following Alvaredo et al. (2016) we exploit kinks in the budget set generated by a drop in the marginal SSC rate at earnings caps. Based on...
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