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Taxes and the Labor Supply of the Stars

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  • Daniel Keniston
  • Abigail Allison M. Peralta

Abstract

Do high taxes cause superstars to work less? We test this hypothesis using complete data on Hollywood movie stars' labor supply from 1927 to 2014. Changes to marginal tax rates in high tax brackets have no significant effect on the number of films a movie star makes each year. However, in years with high taxes, stars produce more highly rated movies with award-winning directors, potentially substituting prestigious films for pecuniary gains

Suggested Citation

  • Daniel Keniston & Abigail Allison M. Peralta, 2022. "Taxes and the Labor Supply of the Stars," NBER Working Papers 30698, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30698
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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