TY  - RPRT
        AU  - Fuest, Clemens
AU  - Peichl, Andreas
AU  - Siegloch, Sebastian
        TI  - Do Higher Corporate Taxes Reduce Wages? Micro Evidence from Germany
        PY  - 2013/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7390
        UR  - https://www.iza.org/publications/dp7390
        AB  - Because of endogeneity problems very few studies have been able to identify the incidence of corporate taxes on wages. We circumvent these problems by using an 11-year panel of data on 11,441 German municipalities' tax rates, 8 percent of which change each year, linked to administrative matched employer-employee data. Consistent with our theoretical model, we find a negative effect of corporate taxation on wages: a 1 euro increase in tax liabilities yields a 77 cent decrease in the wage bill. The direct wage effect, arising in a collective bargaining context, dominates, while the conventional indirect wage effect through reduced investment is empirically small due to regional labor mobility. High and medium-skilled workers, who arguably extract higher rents in collective agreements, bear a larger share of the corporate tax burden.
        KW  - administrative data
KW  - wage incidence
KW  - business tax
KW  - local taxation
        ER  -