Does Tax-Benefit Linkage Matter for the Incidence of Social Security Contributions? - HAL-SHS - Sciences de l'Homme et de la Société Access content directly
Preprints, Working Papers, ... Year : 2023

Does Tax-Benefit Linkage Matter for the Incidence of Social Security Contributions?

Abstract

We study the earnings responses to three large increases in employer Social Security contributions (SSCs) in France. We find evidence of full pass-through to workers in the case of a strong and salient relationship between contributions and expected benefits. By contrast, we find a limited pass-through of employer SSCs to wages for reforms that increased SSCs with no tax-benefit linkage. Together with a meta-analysis of the literature, we interpret these results as evidence that tax-benefit linkage and its salience matter for incidence, a claim long made by the literature but not backed by empirical evidence to date.
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Dates and versions

halshs-02191315 , version 1 (23-07-2019)
halshs-02191315 , version 2 (17-04-2020)
halshs-02191315 , version 3 (18-08-2020)
halshs-02191315 , version 4 (23-03-2023)
halshs-02191315 , version 5 (02-01-2024)

Identifiers

  • HAL Id : halshs-02191315 , version 4

Cite

Antoine Bozio, Thomas Breda, Julien Grenet, Arthur Guillouzouic. Does Tax-Benefit Linkage Matter for the Incidence of Social Security Contributions?. 2023. ⟨halshs-02191315v4⟩
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