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Who bears labour taxes and social contributions? A meta-analysis approach

Author

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  • Ángel Melguizo

    ()

  • José González-Páramo

    ()

Abstract

In this paper we apply the meta-regression technique to survey the empirical literature on the economic incidence of labour taxes and social security contributions. In particular, we focus on the effects of taxation on wages to test the conventional view that employees bear the burden due to lower net wages. Based on 52 empirical papers, we find that economic institutions, the tax wedge definition, and the temporal focus significantly affect the results. In the long run, workers bear between two thirds of the tax burden in Continental and Anglo-Saxon economies, and nearly 90 % in the Nordic economies. However, despite the numerous set of controlling variables, a significant part of the variability of the empirical literature remains unexplained. Copyright The Author(s) 2013

Suggested Citation

  • Ángel Melguizo & José González-Páramo, 2013. "Who bears labour taxes and social contributions? A meta-analysis approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 4(3), pages 247-271, August.
  • Handle: RePEc:spr:series:v:4:y:2013:i:3:p:247-271
    DOI: 10.1007/s13209-012-0091-x
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Müller, Kai-Uwe & Neumann, Michael, 2015. "How reliable are incidence estimates based on cross-sectional distributions? Evidence from simulations and linked employer-employee data," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112920, Verein für Socialpolitik / German Economic Association.
    2. repec:kap:decono:v:165:y:2017:i:2:d:10.1007_s10645-017-9298-3 is not listed on IDEAS
    3. Giuseppe Croce, 2015. "Il "welfare bilaterale" e i suoi effetti sull’occupazione," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 2015(103), pages 223-244.
    4. Giuseppe Croce, "undated". "Tax-benefits policies jointly run by the social partners: Labour market implications of the Bipartite Sectoral Funds," Working Papers 173, University of Rome La Sapienza, Department of Public Economics.
    5. repec:eee:pubeco:v:156:y:2017:i:c:p:81-100 is not listed on IDEAS
    6. Kai-Uwe Müller & Michael Neumann, 2016. "Who Bears the Burden of Social Security Contributions in Germany? Evidence from 35 Years of Administrative Data," Discussion Papers of DIW Berlin 1627, DIW Berlin, German Institute for Economic Research.
    7. Michael Neumann, 2015. "Earnings Responses to Social Security Contributions," Discussion Papers of DIW Berlin 1489, DIW Berlin, German Institute for Economic Research.

    More about this item

    Keywords

    Labour taxes; Incidence; Meta-analysis; C83; E24; H22;

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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