%0 Report
        %A Baumgartner, Erick
%A Corbi, Raphael
%A Narita, Renata
        %T Payroll Tax, Employment and Labor Market Concentration
        %D 2026
        %8 2026 Jul
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 18838
        %U https://www.iza.org/index.php/publications/dp18838
        %X How much employment can be generated by decreasing payroll taxes? We examine this question by exploring the staggered rollout of a large payroll tax reform in Brazil. Using administrative matched employer-employee data, we find an increase of 5 percent on employment due to both firm growth and firm entry, no impact on wages and a significant increase in profits. Moreover, employment effects are driven by less concentrated labor markets, consistent with predictions from an oligopsony model.
        %K payroll tax
%K employment
%K wages
%K profits
%K oligopsony