This article investigates whether the institution of life-time tenure for public sector workers affects the selection of workers into private and public sector occupations. Precisely, we argue that more generous employment protection for public sector workers may induce risk averse individuals...

This paper stresses the special role of multinational headquarters in corporate profit shifting strategies. Using a large panel of European firms, we show that multinational enterprises (MNEs) are reluctant to shift profits away from their headquarters even if these are located in high-tax...

Are people more likely to infringe on a legal obligation if they perceive it as unfair? This question is especially relevant in situations with low potential punishment for disobeying an obligation,i.e., with expressive law. To explore this issue, we present experimental evidence on how...

In recent years several countries have augmented their national tax laws bytransfer pricing legislations which intend to limit the leeway of multinational firms to exploit international corporate tax rate diverences and relocate profit to low-tax affiliates by distorting intra-firm transfer...

This paper examines the impact of tax incentives on corporate research and development (R&D) activity. R&D tax incentives are commonly provided as special tax allowances or tax credits. In recent years, several countries also reduced their income tax rates on R&D output with the purpose to...

Using data on European firms, this paper provides evidence that an overproportional fraction of multinational group profits accrues with the corporate headquarters. Quantitatively, the estimates suggest that headquarters are by around 25% more profitable than their foreign subsidiaries, whereas...

Theory suggests that large firms are more likely to engage in lobbying behaviour and have better bargaining positions against their host governments than smaller entities. Conditional on jurisdiction size, public policy choices are thus predicted to depend on the shape of a jurisdiction's firm...