TY  - RPRT
        AU  - Baumgartner, Erick
AU  - Corbi, Raphael
AU  - Narita, Renata
        TI  - Payroll Tax, Employment and Labor Market Concentration
        PY  - 2026/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18838
        UR  - https://www.iza.org/index.php/publications/dp18838
        AB  - 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.
        KW  - payroll tax
KW  - employment
KW  - wages
KW  - profits
KW  - oligopsony
        ER  -