Advanced Search
MyIDEAS: Login to save this paper or follow this series

Public Burdens and Corporate Behavior (Japanese)

Contents:

Author Info

  • KOBAYASHI Yohei
  • KUME Koichi
  • OIKAWA Keita
  • SONE Tetsuro

Abstract

Striking a balance between economic growth and public burdens, such as taxes and social insurance contributions, is an urgent issue especially in Japan as it is facing rapid population aging. However, existing research regarding public burdens on corporations mainly focuses on the incidence of employer contributions. In this paper, we analyze the various effects of public burdens on corporate behavior with due consideration to the difference between social insurance contributions and corporate taxes, capital stock adjustments, and employment adjustments (regular and non-regular employees). Empirical results can be summarized as follows: (1) Corporations handle the increase of public burdens in a variety of ways, not only wage reduction. (2) The changes in social insurance contributions have a large influence on the wages and employment of regular workers. On the other hand, corporate taxes have an impact on investment and research & development (R&D). (3) There exist differences in employment adjustment between part-time, regular, and dispatched workers. (4) Corporations tend to deal with the changes in public burdens by reducing their own profits in the short run. In the medium run, however, they tend to cut employment, curb investment, or raise prices. These results show that analyzing only the incidence of employer contributions is not sufficient, and we also need to consider the various aspects of public burdens and adjustment costs to corporations.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.rieti.go.jp/jp/publications/dp/12j010.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion Papers (Japanese) with number 12010.

as in new window
Length: 29 pages
Date of creation: Apr 2012
Date of revision:
Handle: RePEc:eti:rdpsjp:12010

Contact details of provider:
Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901
Phone: +81-3-3501-1363
Fax: +81-3-3501-8577
Email:
Web page: http://www.rieti.go.jp/
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eti:rdpsjp:12010. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.