In this paper I evaluate the effects of a regional experiment that reduced payroll-taxes by 3-6 percentage points of the firm's wage sum in Northern and Eastern Finland. I estimate the effect of the payroll-tax reduction on firms' employment, wage sum and profits, and on workers hourly pay and...

This paper estimates the incidence of corporate taxes on wages using a 20-year panel of German municipalities. Administrative linked employer-employee data allows estimating heterogeneous worker and firm effects. We set up a general theoretical framework showing that corporate taxes can have a...

Payroll tax has been frequently singled out as having an adverse effect on businesses and the economy in general. Payroll tax is levied by the States against the total sum of remuneration of employees within a firm for each dollar above a threshold. The threshold exempts small businesses from...