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Tax reform, wages, and employment: Evidence from Ohio

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  • Kakpo, Eliakim

Abstract

This paper evaluates the incidence of a natural experiment entailed by the 2005 Ohio tax reform. The policy reduced the corporate and personal income taxes over the period 2006-2010. I observe several cross-sections of the Current Population Survey and compare individuals in Ohio to similar individuals in Pennsylvania. Using a triple difference identification approach, I conclude that the reform significantly boosted labor force participation for women, specifically those with 5-year-old children and increased reported self-employment taxable earnings. However, it does not seem to have had a positive impact on corporate wages in the short-run.

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  • Kakpo, Eliakim, 2018. "Tax reform, wages, and employment: Evidence from Ohio," MPRA Paper 94987, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:94987
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    References listed on IDEAS

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    More about this item

    Keywords

    Tax incidence; Income tax; Corporate tax; Self-employment; Wages; Employment;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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