American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The Taxing Deed of Globalization
American Economic Review
vol. 109,
no. 2, February 2019
(pp. 353–90)
(Complimentary)
Abstract
This paper examines the effects of globalization on the distribution of worker-specific labor taxes using a unique set of tax calculators. We find a differential effect of higher trade and factor mobility on relative tax burdens in 1980–1993 versus 1994–2007 in the OECD. Prior to 1994, greater openness meant that higher income earners were taxed progressively more. However, after 1994, we document a globalization-induced rise in the labor income tax burden of the middle class, while the top 1 percent of workers and employees faced a reduction in their tax burden of 0.59–1.45 percentage points.Citation
Egger, Peter H., Sergey Nigai, and Nora M. Strecker. 2019. "The Taxing Deed of Globalization." American Economic Review, 109 (2): 353–90. DOI: 10.1257/aer.20160600Additional Materials
JEL Classification
- D31 Personal Income, Wealth, and Their Distributions
- F16 Trade and Labor Market Interactions
- F61 Economic Impacts of Globalization: Microeconomic Impacts
- H22 Taxation and Subsidies: Incidence
- H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes