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The Influence of Taxes on Employment and Population Growth: Evidence From the Washington, D.C. Metropolitan Area

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  • Mark, Stephen T.
  • McGuire, Therese J.
  • Papke, Leslie E.

Abstract

We examine whether personal and business taxes are an important determinant of economic development in a metropolitan area. We estimate determinants of the location of private employment and population across the D.C. metropolitan area over the period 1969-94. After controlling for jurisdiction and time effects, we find that higher rates of two business taxes--sales and personal property--reduce annual employment growth by a significant amount. Higher levels of nonwelfare public service expenditures are estimated to increase employment growth. We do not find local property taxes to be a significant factor.

Suggested Citation

  • Mark, Stephen T. & McGuire, Therese J. & Papke, Leslie E., 2000. "The Influence of Taxes on Employment and Population Growth: Evidence From the Washington, D.C. Metropolitan Area," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(1), pages 105-124, March.
    • Handle: RePEc:ntj:journl:v:53:y:2000:i:1:p:105-24
    DOI: 10.17310/ntj.2000.1.06
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    References listed on IDEAS

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    1. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, November.
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