Employment, wages, and dividend taxation
- This paper tests the effect of dividend taxation on employment. Since dividend taxation affects real investments, tax-induced changes in real investments should map into employment effects. Using a difference-in-difference approach around the Swedish 2006 dividend tax cut and unique corporate-level data with income tax information on every employee, we find robust evidence of dividend tax-induced employment effects. In response to the dividend cut, both employment and wage levels increase in cash-constrained firms relative to cash-rich closely held corporations.
Author: | Annette AlstadsaeterORCiD, Martin Jacob, Altin Vejsiu |
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URN: | urn:nbn:de:hbz:992-opus4-6601 |
DOI: | https://doi.org/10.2139/ssrn.2490000 |
Series (Serial Number): | FAccT Center Working Paper Series (18/2014) |
Publisher: | WHU - Otto Beisheim School of Management |
Place of publication: | Vallendar |
Document Type: | Working Paper |
Language: | English |
Date of Publication (online): | 2018/06/11 |
Date of first Publication: | 2014/09/01 |
Release Date: | 2018/06/11 |
Tag: | Dividendenbesteuerung; Entlohnung; Erwerbstätigkeit; Privatunternehmen; Schweden Dividend taxation; Employment; Private firms; Sweden; Wages |
Page Number: | 8 |
Institutes: | WHU Centers / WHU Financial Accounting & Tax Center (FAccT Center) |
JEL-Classification: | H Public Economics / H2 Taxation, Subsidies, and Revenue / H21 Efficiency; Optimal Taxation |
H Public Economics / H2 Taxation, Subsidies, and Revenue / H25 Business Taxes and Subsidies | |
Licence (German): | Copyright for this publication |