IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v86y2024ics1043951x24000919.html
   My bibliography  Save this article

The hidden cost of corporate tax cuts: Evidence from worker health in China

Author

Listed:
  • He, Fan
  • Zeng, Xin
  • Xue, Jingwen
  • Xu, Jianbin

Abstract

Despite extensive research on the impact of corporate tax cuts on firm-level outcomes, their effects on worker health have yet to be examined. This study aims to address this research gap by utilizing individual-level panel data from the China Family Panel Studies between 2010 and 2018, and by exploiting exogenous shock in the corporate effective tax burden stemming from accelerated depreciation. Our results yield three key findings: first, that corporate tax cuts significantly reduce worker health; second, that this effect may be driven by increased working hours and poor health behaviors; third, that corporate tax cuts exacerbate health inequalities based on gender, education level, executive positions, and employed company. These findings shed light on the wider implications of tax incentives for corporate investment and contribute to stimulating interest in the welfare of workers in a global wave of tax cuts.

Suggested Citation

  • He, Fan & Zeng, Xin & Xue, Jingwen & Xu, Jianbin, 2024. "The hidden cost of corporate tax cuts: Evidence from worker health in China," China Economic Review, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:chieco:v:86:y:2024:i:c:s1043951x24000919
    DOI: 10.1016/j.chieco.2024.102202
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X24000919
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.chieco.2024.102202?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Corporate tax cuts; Worker health; Health inequality; Accelerated depreciation;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:86:y:2024:i:c:s1043951x24000919. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/chieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.