The effects of employer payroll tax cuts

2017-11-22 Vox

At Vox David Seim, Stockholm University and affiliated to IFN, et al write about cuts to the employer portion of payroll taxes. The researchers show that such cuts reduced youth unemployment by 2-3 percentage points. "Firms used the tax windfall to expand employment and business activity, and firms with larger tax windfalls raised wages for workers – both young and old – collectively."

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