TY  - RPRT
        AU  - Bozio, Antoine
AU  - Breda, Thomas
AU  - Grenet, Julien
        TI  - Does Tax-Benefit Linkage Matter for the Incidence of Social Security Contributions?
        PY  - 2019/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 12502
        UR  - https://www.iza.org/publications/dp12502
        AB  - We study the earnings responses to three large increases in employer Social Security contributions (SSCs) in France. We find evidence of full pass-through to workers in the case of a strong and salient relationship between contributions and expected benefits. By contrast, we find limited pass-through of employer SSCs to wages for reforms that increased SSCs with no tax-benefit linkage. Together with a meta-analysis of the literature, we interpret these results as evidence that tax-benefit linkage and its salience matter for incidence, a claim long made by the literature but not backed by direct empirical evidence to date.
        KW  - tax incidence
KW  - payroll tax
KW  - social security contributions
KW  - tax-benefit linkage
        ER  -