@TechReport{iza:izadps:dp17385, author={Bryson, Alex and Dale-Olsen, Harald}, title={Job Search, Efficiency Wages and Taxes}, year={2024}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={17385}, url={https://www.iza.org/publications/dp17385}, abstract={Norwegian workers' job mobility decisions are related to firms' wage policies, but also depend on the national tax schedule. By utilising Norwegian population-wide administrative linked employer-employee data on workers and firms between 2010-2019, we study how the job-to-job turnover of employees is affected by marginal taxes and firms' pay policies, enabling inferences to be made about on-the-job search. Paying higher wages is associated with a drop in job-to-job separation rates, but this negative relationship is weakened when income taxes increase. Higher taxes imply strictly reduced search activity, but less so for bonus job-workers than salaried workers.}, keywords={job search;marginal taxes;monopsony;wages;effort}, }