On the heterogeneous effects of tax policy on labor market outcomes

Document Type

Article

Source of Publication

Southern Economic Journal

Publication Date

1-1-2021

Abstract

Many recent studies have documented the heterogeneous effects of government‐spending shocks on major macroeconomic variables, particularly on output. We delve deeper into the heterogeneous effects of fiscal policy innovations, but focus on the tax policy innovations and their impact on the labor market, while accounting for gender, race, ethnicity, and the business cycle. Using microlevel data from the United States, we find that: (i) Tax shocks have varying employment effects depending on gender, race, and the stage of the business cycle; (ii) Sector, industry, and occupational segregation in labor markets by gender, race, and ethnicity can explain most of the variation in response to fiscal policy shocks.

ISSN

2325-8012

Publisher

Southern Economic Association

Disciplines

Business

Scopus ID

85119691722

Indexed in Scopus

yes

Open Access

no

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