%0 Report
        %A Bastani, Spencer
%A Waldenström, Daniel
        %T The Ability Gradient in Bunching
        %D 2020
        %8 2020 Apr
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 13141
        %U https://www.iza.org/index.php/publications/dp13141
        %X We analyze the relationship between cognitive ability and bunching in the context of a large and salient kink point of the Swedish income tax schedule. Using population-wide register data from the Swedish military enlistment and administrative tax records, we find that high-ability individuals bunch more than low-ability individuals. This ability gradient is stronger for the self-employed, but is also present among wage earners. We also use high-school GPA and math grades to analyze gender differences, finding a stronger ability gradient among men.
        %K bunching
%K ability
%K skills
%K complexity
%K optimal taxation