Replication data for: Income Taxes, Compensating Differentials, and Occupational Choice: How Taxes Distort the Wage-Amenity Decision

Name: Replication data for: Income Taxes, Compensating Differentials, and Occupational Choice: How Taxes Distort the Wage-Amenity Decision
Published: 2012-02-01
License: This work is licensed under an Other license created by the data depositor. Please refer to the LICENSE file, which should be located alongside the project data and documentation.

Principal Investigator(s): View help for Principal Investigator(s) David Powell; Hui Shan

Version: View help for Version V1

Name	File Type	Size	Last Modified
1997.dta	application/octet-stream	3.6 MB	10/13/2019 03:04:AM
J88526.do	text/plain	207.9 KB	10/13/2019 03:04:AM
J88526.txt	text/plain	18.2 MB	10/13/2019 03:04:AM
readme.txt	text/plain	40.3 KB	10/13/2019 03:04:AM

Project Description

Summary: The link between taxes and occupational choices is central for understanding the welfare impacts of income taxes. Just as taxes distort the labor-leisure decision, they may also distort the wage-amenity decision. Yet, there have been few studies on the full response along this margin. When tax rates increase, workers favor jobs with lower wages and more amenities. We introduce a two-step methodology which uses compensating differentials to characterize the tax elasticity of occupational choice. We estimate a significant compensated elasticity of 0.03, implying that a 10 percent increase in the net-oftax rate causes workers to change to a 0.3 percent higher wage job. (JEL H24, H31, J22, J24, J31)

Scope of Project

JEL Classification:
      H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
      H31 Fiscal Policies and Behavior of Economic Agents: Household
      J22 Time Allocation and Labor Supply
      J24 Human Capital; Skills; Occupational Choice; Labor Productivity
      J31 Wage Level and Structure; Wage Differentials

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V1 [2019-10-13]

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This work is licensed under an Other license created by the data depositor. Please refer to the LICENSE file, which should be located alongside the project data and documentation.

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