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State and Local Taxes and Employment by Wage Level

Author

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  • Sohani Fatehin
  • David L. Sjoquist

Abstract

Economists have devoted much attention to understanding the effects of state–local fiscal policies, particularly taxes, on the growth of state-level employment. However, no one has investigated whether the effects differ by wage level. Using a state-level panel data set, the authors investigate the link between state–local taxes and the growth of employment for three wage-level categories. The authors find relatively consistent evidence supporting the proposition that the response of employment growth to changes in taxes differs by wage level.

Suggested Citation

  • Sohani Fatehin & David L. Sjoquist, 2021. "State and Local Taxes and Employment by Wage Level," Economic Development Quarterly, , vol. 35(1), pages 53-65, February.
    • Handle: RePEc:sae:ecdequ:v:35:y:2021:i:1:p:53-65
    DOI: 10.1177/0891242420973751
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