The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability

The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability

Payroll taxes in Sweden were reduced substantially for people ages 26 years or younger on July 1, 2007. The objective of this tax cut was to lower youth unemployment. The question of how gains from payroll taxes are distributed between workers and...

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Main Authors: Malm, Arvid, Eklund, Johan, Francis, David, Jiang, Nan
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2016
Subjects:
payroll tax
firm profitability
youth employment
Online Access:http://documents.worldbank.org/curated/en/2016/10/26854133/effect-swedish-payroll-tax-cut-youths-firm-profitability
http://hdl.handle.net/10986/25299
id okr-10986-25299
recordtype oai_dc
spelling okr-10986-252992021-04-23T14:04:29Z The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability Malm, Arvid Eklund, Johan Francis, David Jiang, Nan payroll tax firm profitability youth employment Payroll taxes in Sweden were reduced substantially for people ages 26 years or younger on July 1, 2007. The objective of this tax cut was to lower youth unemployment. The question of how gains from payroll taxes are distributed between workers and owners of firms has been the focus of considerable theoretical and empirical attention. This paper examines the impact of the Swedish reform on firm profits using individual-level and firm-level microdata. Previous investigations into the effects of this particular reform have focused entirely on the effects on employment and wages, or have been limited to the retail sector. This paper finds that the reform was not associated with a general increase in firm profitability, but that there is some evidence of a positive effect on profits in the retail and wholesale sector. 2016-11-01T14:06:45Z 2016-11-01T14:06:45Z 2016-10 Working Paper http://documents.worldbank.org/curated/en/2016/10/26854133/effect-swedish-payroll-tax-cut-youths-firm-profitability http://hdl.handle.net/10986/25299 English en_US Policy Research Working Paper;No. 7854 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Sweden
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic payroll tax
firm profitability
youth employment
spellingShingle payroll tax
firm profitability
youth employment
Malm, Arvid
Eklund, Johan
Francis, David
Jiang, Nan
The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability
geographic_facet Europe and Central Asia
Sweden
relation Policy Research Working Paper;No. 7854
description Payroll taxes in Sweden were reduced substantially for people ages 26 years or younger on July 1, 2007. The objective of this tax cut was to lower youth unemployment. The question of how gains from payroll taxes are distributed between workers and owners of firms has been the focus of considerable theoretical and empirical attention. This paper examines the impact of the Swedish reform on firm profits using individual-level and firm-level microdata. Previous investigations into the effects of this particular reform have focused entirely on the effects on employment and wages, or have been limited to the retail sector. This paper finds that the reform was not associated with a general increase in firm profitability, but that there is some evidence of a positive effect on profits in the retail and wholesale sector.
format Working Paper
author Malm, Arvid
Eklund, Johan
Francis, David
Jiang, Nan
author_facet Malm, Arvid
Eklund, Johan
Francis, David
Jiang, Nan
author_sort Malm, Arvid
title The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability
title_short The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability
title_full The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability
title_fullStr The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability
title_full_unstemmed The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability
title_sort effect of the swedish payroll tax cut for youths on firm profitability
publisher World Bank, Washington, DC
publishDate 2016
url http://documents.worldbank.org/curated/en/2016/10/26854133/effect-swedish-payroll-tax-cut-youths-firm-profitability
http://hdl.handle.net/10986/25299
_version_ 1764458896546594816

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