%0 Report
        %A Fuest, Clemens
%A Peichl, Andreas
%A Siegloch, Sebastian
        %T Do Higher Corporate Taxes Reduce Wages?
        %D 2015
        %8 2015 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 9606
        %U https://www.iza.org/index.php/publications/dp9606
        %X 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 negative effect on wages in various labor market models. Using an event study design, we test the predictions of the theory. Our results indicate that workers bear about 40% of the total tax burden. Empirically, we confirm the importance of both labor market institutions and profit shifting possibilities for the incidence of corporate taxes on wages.
        %K administrative data
%K wage incidence
%K business tax
%K local taxation