Job search under changing labour taxes

B-Tier
Journal: Labour Economics
Year: 2025
Volume: 95
Issue: C

Authors (2)

Bryson, Alex (University College London (UCL...) Dale-Olsen, Harald (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Workers’ job mobility decisions are related to firms’ wage policies but also depend on tax schedules. Using Norwegian population-wide administrative linked employer-employee data for 2010–2019, we study how the job-to-job turnover of employees is affected by marginal taxes and firms’ pay policies, thus drawing inferences on job search behaviour. By paying higher wages, job-to-job separation rates drop, but this negative relationship is weakened when income taxes increase, consistent with higher taxes reducing search activity. However, consistent with theory, the tax effect is smaller where workers receive performance bonuses.

Technical Details

RePEc Handle
repec:eee:labeco:v:95:y:2025:i:c:s0927537125000740
Journal Field
Labor
Author Count
2
Added to Database
2026-01-24