The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability

Malm, Arvid; Eklund, Johan; Francis, David; Jiang, Nan

doi:10.1596/1813-9450-7854

collection.link.5	https://openknowledge.worldbank.org/handle/10986/9
collection.name.5	Policy Research Working Papers
dc.contributor.author	Malm, Arvid
dc.contributor.author	Eklund, Johan
dc.contributor.author	Francis, David
dc.contributor.author	Jiang, Nan
dc.date.accessioned	2016-11-01T14:06:45Z
dc.date.available	2016-11-01T14:06:45Z
dc.date.issued	2016-10
dc.date.lastModified	2021-04-23T14:04:29Z
dc.description.abstract	Payroll taxes in Sweden were reduced substantially for people ages 26 years or younger on July 1, 2007. The objective of this tax cut was to lower youth unemployment. The question of how gains from payroll taxes are distributed between workers and owners of firms has been the focus of considerable theoretical and empirical attention. This paper examines the impact of the Swedish reform on firm profits using individual-level and firm-level microdata. Previous investigations into the effects of this particular reform have focused entirely on the effects on employment and wages, or have been limited to the retail sector. This paper finds that the reform was not associated with a general increase in firm profitability, but that there is some evidence of a positive effect on profits in the retail and wholesale sector.	en
dc.identifier	http://documents.worldbank.org/curated/en/2016/10/26854133/effect-swedish-payroll-tax-cut-youths-firm-profitability
dc.identifier.uri	http://hdl.handle.net/10986/25299
dc.language	English
dc.language.iso	en_US
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper;No. 7854
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	payroll tax
dc.subject	firm profitability
dc.subject	youth employment
dc.title	The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability	en
dc.type	Working Paper	en
okr.crossref.title	The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability
okr.date.disclosure	2016-10-11
okr.doctype	Publications & Research
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.docurl	http://documents.worldbank.org/curated/en/2016/10/26854133/effect-swedish-payroll-tax-cut-youths-firm-profitability
okr.googlescholar.linkpresent	yes
okr.identifier.doi	10.1596/1813-9450-7854
okr.identifier.externaldocumentum	090224b084619d0a_2_0
okr.identifier.internaldocumentum	26854133
okr.identifier.report	WPS7854
okr.imported	true
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/803371476191665204/pdf/WPS7854.pdf	en
okr.region.administrative	Europe and Central Asia
okr.region.country	Sweden
okr.topic	Macroeconomics and Economic Growth :: Taxation & Subsidies
okr.topic	Social Protections and Labor :: Employment and Unemployment
okr.topic	Social Protections and Labor :: Labor Law
okr.unit	Global Indicators Group, Development Economics

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Policy Research Working Papers

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The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability

This item appears in the following Collection(s)

Shock Waves : Managing the Impacts of Climate Change on Poverty

Shared Prosperity and Poverty Eradication in Latin America and the Caribbean

Fossil Fuel Subsidies : Approaches and Valuation

The Turnaround of the Swedish Economy : Lessons from Large Business Sector Reforms

SMEs, Age, and Jobs : A Review of the Literature, Metrics, and Evidence

Political Economy of Public Policies : Insights from Distortions to Agricultural and Food Markets

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The Effect of the Swedish Payroll Tax Cut for Youths on Firm Profitability

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Shock Waves : Managing the Impacts of Climate Change on Poverty

Shared Prosperity and Poverty Eradication in Latin America and the Caribbean

Fossil Fuel Subsidies : Approaches and Valuation

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