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Evaluating regional cuts in the payroll tax from a firm perspective
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics.
2015 (English)In: The annals of regional science, ISSN 0570-1864, E-ISSN 1432-0592, Vol. 54, no 2, 323-347 p.Article in journal (Refereed) Published
Abstract [en]

With few exceptions reduced payroll taxes are analysed with regards to employment and wage effects. Our study extends the impacts to cover several possible firm outcomes using a multilevel modelling approach. Between 20-55 percent in the variation in the outcomes can be explained by municipality differences. On firm level the result follows a clear business logic. In the short run, profits and turnover increased wish later on transforms into increased wages. After seven years we find indication of impacts on investments. Thus, the support has some short-term impacts that are reduced with time and the long-term effects are questionable.

Place, publisher, year, edition, pages
Springer , 2015. Vol. 54, no 2, 323-347 p.
Keyword [en]
Payroll tax cuts, impacts, firm perspectives, regional heterogeneity, multilevel analysis
National Category
Economics
Identifiers
URN: urn:nbn:se:bth-6328DOI: 10.1007/s00168-015-0656-2ISI: 000353356800001Local ID: oai:bth.se:forskinfo90CC079C8019E0B8C1257DCC007C0DF9OAI: oai:DiVA.org:bth-6328DiVA: diva2:833825
Note

The final publication is available at Springer via http://dx.doi.org/[10.1007/s00168-015-0656-2]".

Available from: 2015-05-26 Created: 2015-01-13 Last updated: 2015-09-21Bibliographically approved

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Quoreshi, Shahiduzzaman
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