%0 Report
        %A Arulampalam, Wiji
%A Devereux, Michael P.
%A Maffini, Giorgia
        %T The Direct Incidence of Corporate Income Tax on Wages
        %D 2010
        %8 2010 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 5293
        %U https://www.iza.org/publications/dp5293
        %X We examine the extent to which taxes on corporate income are directly shifted onto the workforce. We use data on 55,082 companies located in nine European countries over the period 1996-2003. We identify this direct shifting through cross-company variation in tax liabilities, conditional on value added per employee. Our central estimate is that the long run elasticity of the wage bill with respect to taxation is -0.093. Evaluated at the mean, this implies that an exogenous rise of $1 in tax would reduce the wage bill by 49 cents. We find only weak evidence of a difference for multinational companies.
        %K wage bargaining
%K effective incidence
%K income tax