Work detail

Economic incidence of corporate income tax

Author: Bc. Václav Petrželka
Year: 2020 - summer
Leaders: doc. Petr Janský Ph.D.
Consultants:
Work type: Bachelors
Language: English
Pages: 52
Awards and prizes:
Link:
Abstract: The main objective of this thesis is to determine whether and if there is any
incidence of corporate income tax on the level of wages. This topic has been
discussed for decades, and the conclusions of empirical analyses vary across
available studies. Data on 35 OECD Member States for the period 2000-2018
are examined to verify this impact. Because we believe that our variables affect
each other over time and at the same time there is a variable in the model that
causes heterogeneity, we use a panel VAR model. Altogether, two models are
estimated, as we have demonstrated two datasets. However, the results show
that there is no evidence that changes to the corporate income tax rate affect
wages in any way. Although this discovery is not very statistically significant,
it is a very interesting finding, which is consistent with some of the authors of
contemporary scientific literature.

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