116 research outputs found
Do higher corporate taxes reduce wages? : Micro evidence from Germany
Because of endogeneity problems very few studies have been able to identify
the incidence of corporate taxes on wages. We circumvent these problems
by using an 11-year panel of data on 11,441 German municipalities' tax
rates, 8 percent of which change each year, linked to administrative matched
employer-employee data. Consistent with our theoretical model, we find a
negative effect of corporate taxation on wages: a 1 euro increase in tax liabilities
yields a 77 cent decrease in the wage bill. The direct wage effect, arising
in a collective bargaining context, dominates, while the conventional indirect
wage effect through reduced investment is empirically small due to regional labor
mobility. High and medium-skilled workers, who arguably extract higher
rents in collective agreements, bear a larger share of the corporate tax burden
Moving Up a Gear: The Impact of Compressing Instructional Time into Fewer Years of Schooling
Is Being 'Soft on Crime' the Solution to Rising Crime Rates? Evidence from Germany
Based on a theoretical framework on informal, custodial and non-custodial
sentencing, the paper provides econometric tests on the effectiveness of police, public
prosecution and courts. Using a unique dataset covering German states for the period 1977-
2001, a comprehensive system of criminal prosecution indicators is derived and subsequently
related to the incidence of six major offence categories using panel-econometrics. Empirical
evidence suggests that the criminal policy of diversion failed as increasing shares of
dismissals by prosecutors and judges enhance crime rates in Germany. Crime is significantly
deterred by higher clearance and conviction rates, while the effects of indicators representing
type (fine, probation, imprisonment) and severity (length of prison sentence, amount of fine)
of punishment are often small and insignificant
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