Title

State and Local Taxes and Employment by Wage Level

Document Type

Article

Publication Date

11-22-2020

Department

Economics

Language

English

Publication Title

Economic Development Quarterly

Abstract

Economists have devoted much attention to understanding the effects of state–local fiscal policies, particularly taxes, on the growth of state-level employment. However, no one has investigated whether the effects differ by wage level. Using a state-level panel data set, the authors investigate the link between state–local taxes and the growth of employment for three wage-level categories. The authors find relatively consistent evidence supporting the proposition that the response of employment growth to changes in taxes differs by wage level.

Comments

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DOI

10.1177/0891242420973751

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