TY  - RPRT
        AU  - Bastani, Spencer
AU  - Waldenström, Daniel
        TI  - The Ability Gradient in Bunching
        PY  - 2020/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 13141
        UR  - https://www.iza.org/index.php/publications/dp13141
        AB  - 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.
        KW  - bunching
KW  - ability
KW  - skills
KW  - complexity
KW  - optimal taxation
        ER  -