AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Heterogeneity in Corporate Tax Incidence by Worker Characteristics
AEA Papers and Proceedings
vol. 114,
May 2024
(pp. 346–51)
Abstract
We study how corporate tax incidence on worker earnings varies across worker characteristics: gender, age, and employment tenure. To do so, we examine effects of the corporate tax cuts introduced by the Tax Cuts and Jobs Act (TCJA), using data from federal tax records and a difference-in-differences empirical design. We find no systematic differential effects by gender but find that TCJA resulted in larger earnings gaps for older workers and long-tenured workers. These gaps become larger towards the top of the within-firm earnings distribution.Citation
Kennedy, Patrick J., Christine L. Dobridge, Paul Landefeld, and Jacob Mortenson. 2024. "Heterogeneity in Corporate Tax Incidence by Worker Characteristics." AEA Papers and Proceedings, 114: 346–51. DOI: 10.1257/pandp.20241095Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- H22 Taxation and Subsidies: Incidence
- H25 Business Taxes and Subsidies including sales and value-added (VAT)
- J16 Economics of Gender; Non-labor Discrimination
- J31 Wage Level and Structure; Wage Differentials