Culture and Taxes: Towards Identifying Tax Competition

We propose a new strategy to identify the existence of interjurisdictional tax competition and to estimate its spatial reach. Our strategy rests on differences between desired tax levels, determined by culture-specific preferences, and equilibrium tax levels, determined by interjurisdictional fiscal externalities as well as by preferences. While fiscal preferences differ systematically and demonstrably between French-speaking and German-speaking Swiss regions, we find that local income tax burdens do not change discretely at the language border but exhibit smooth spatial gradients. The slope of these gradients implies that tax competition constrains tax choices of jurisdictions with a preference for higher taxes at a distance of up to 20 kilometres. Hence, tax competition does constrain income taxation by local governments. When, as in the Swiss system, local jurisdictions are constrained to decide on a single shifter of an exogenously given tax schedule, the effect of tax competition are confined to a small spatial scale.tax competition; fiscal federalism; culture

Disability, Gender and Race: Does Educational Attainment Reduce Earning Disparity for All or Just Some?

Although interest in research on persons with disabilities has grown steadily, these individuals continue to encounter workplace discrimination and remain marginalized and understudied. We draw on human capital and discrimination theories to propose and test hypotheses on the effects of educational attainment on earnings (in)equality for persons with disabilities and the moderating influence of gender and race using 885,950 records, including 40,438 persons with disabilities from the American Community Survey 2015 (United States Census Bureau, 2015). Consistent with human capital theory, we find that persons with disabilities benefit from greater educational attainment, yet consistent with disability discrimination theories, we find evidence that they are less likely to convert educational gains for master’s and higher degrees into earning gains, and consistent with theories on multiple sources of discrimination, we find that women with disabilities may be doubly disadvantaged. These results, however, are mixed and complex. Considering the importance of harnessing diverse talent in organizations, we outline implications for research and practice toward reducing workplace discrimination

Culture, work attitudes, and job search:Evidence from the Swiss language border

Unemployment varies across space and in time. Can attitudes toward work explain some of these differences? We study job search durations along the Swiss language border, sharply separating Romance language speakers from German speakers. According to surveys and voting results, the language border separates two social groups with different cultural background and attitudes toward work. Despite similar local labor markets and identical institutions, Romance language speakers search for work almost seven weeks (or 22%) longer than their German speaking neighbors. This is a quantitatively large effect, comparable to a large change in unemployment insurance generosity

The Effect of School Starting Age on Special Needs Incidence and Child Development into Adolescence

Children starting school at older ages consistently exhibit better educational outcomes. In this paper, we underscore child development as a mechanism driving this effect. We study the causal effect of school starting age on a child’s probability of developing special educational needs in early grades. We find that starting school at a relatively older age decreases the probability of developing special needs by approximately 6 percentage points. This decrease is due to a lower incidence of various behavioral and learning impairments. Importantly, the effect is not driven by non-expert over-referrals of relatively younger children to special needs services. The effect is persistent throughout compulsory schooling, resulting in higher test scores in grade eight. Although these performance differentials are significant, they do not affect labor market entry

Culture, Work Attitudes, and Job Search: Evidence from the Swiss Language Border

Unemployment varies across space and in time. Can attitudes toward work explain some of these differences? We study job search durations along the Swiss language border, sharply separating Romance language speakers from German speakers. According to surveys and voting results, the language border separates two social groups with different cultural background and attitudes toward work. Despite similar local labor markets and identical institutions, Romance language speakers search for work almost seven weeks (or 22%) longer than their German speaking neighbors. This is a quantitatively large effect, comparable to a large change in unemployment insurance generosity. (JEL: J21, J64, Z10

The Demand for Social Insurance: Does Culture Matter?

Can different social groups develop different demands for social insurance of risks to health and work? We study this issue across language groups in Switzerland. Language de*fines social groups and Swiss language groups are separated by a clear geographic border. Actual levels of social insurance are identical on either side of the within state segments of the language border. We can therefore study the role of culture in shaping the demand for social insurance. Specifically, we contrast at the language border actual voting decisions on country-wide changes to social insurance programs. Key results indicate substantially higher support for expansions of social insurance among residents of Latin-speaking (i.e. French, Italian, or Romansh) border municipalities compared to their German-speaking neighbors in adjacent municipalities. We consider three possible explanations for this finding: informal insurance, ideology, and the media. We find that informal insurance does not vary enough to explain stark differences in social insurance. However, di*fferences in ideology and segmented media markets are potentially important explanatory factors