Wage Effects of Non-Wage Labour Costs

Cervini-Plá, María; Ramos, Xavier; Silva, José I.

doi:10.2139/ssrn.1595523

Cited by 4 publications

(2 citation statements)

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“…We also estimated the model with a subsample of workers present in both 2007 and 2008 with nearly identical results.29Cervini-Plá et al (2014) found an increasingly large wage impact of payroll taxes as workers moved up the wage distribution, but for a much larger reduction in the payroll tax.…”

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confidence: 77%

“…Workers from all age groups benefit from higher wages, this last pattern being consistent with rent sharing, or pay equity concerns. Cervini-Plá et al (2014) use data from Spain and a policy that introduced lower payroll tax contribution rates and lower firing costs for the unemployed aged less than 30 and over 45 years who find themselves in a new permanent job. They exploit variations in payroll tax rates and firing costs between age groups and across time.…”

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confidence: 99%

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Estimating the impacts of payroll taxes: Evidence from Canadian employer–employee tax data

Deslauriers

Dostie²,

Gagné³

et al. 2021

Canadian J of Economics

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Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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mentioning

confidence: 77%

Section: Literaturementioning

confidence: 99%

Estimating the impacts of payroll taxes: Evidence from Canadian employer–employee tax data

Deslauriers

Dostie²,

Gagné³

et al. 2021

Canadian J of Economics

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Wage effects of non-wage labour costs

Cervini-Plá

Ramos

Silva

2014

European Economic Review

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JEL classification: C23 D31 J31 Keywords:Dismissal costs Payroll tax Evaluation of labour market reforms Difference-in-difference Matching model a b s t r a c tWe study wage effects of two important elements of non-wage labour costs: firing costs and payroll taxes. We exploit a reform that introduced substantial reduction in these two provisions for unemployed workers aged less than 30 and over 45 years who got a permanent job. A matching model with heterogeneous workers predicts positive wage effects of reducing firing costs but ambiguous wage effects of reducing payroll taxes, for both new entrant and incumbent workers. Difference-in-differences estimates and simulation of the model show positive wage effects for both new entrant and incumbent workers. The reduction in firing costs accounts for up to half of the overall wage increase for new entrants but only 10% for incumbents.

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Who Pays for it? The Heterogeneous Wage Effects of Employment Protection Legislation

Leonardi

Pica

2013

The Economic Journal

116

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Theory predicts that the wage effects of government-mandated severance payments depend on workers' and firms' relative bargaining power. This paper estimates the effect of employment protection legislation (EPL) on workers' individual wages in a quasi-experimental setting, exploiting a reform that introduced unjust-dismissal costs in Italy for firms below 15 employees and left firing costs unchanged for bigger firms. Accounting for the endogeneity of the treatment status, we find that high-bargaining power workers (stayers, white collar and workers above 45) are almost left unaffected by the increase in EPL, while low-bargaining power workers (movers, blue collar and young workers) suffer a drop both in the wage level and its growth rate.JEL Classification: E24, J3, J65

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Wage Effects of Non-Wage Labour Costs

Cited by 4 publications

References 18 publications

Estimating the impacts of payroll taxes: Evidence from Canadian employer–employee tax data

Estimating the impacts of payroll taxes: Evidence from Canadian employer–employee tax data

Wage effects of non-wage labour costs

Who Pays for it? The Heterogeneous Wage Effects of Employment Protection Legislation

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