Personal Taxes and Firm Skill Hiring: Evidence from 27 Million Job Postings
55 Pages Posted: 2 Jul 2019 Last revised: 23 Mar 2021
Murillo Campello
University of Florida - Warrington College of Business Administration; National Bureau of Economic Research (NBER)
Janet Gao
McDonough School of Business
Qiping Xu
University of Illinois Urbana Champaign
Date Written: December 27, 2019
Abstract
Using big data on U.S. job postings, we document detrimental effects of local personal income taxes on the level of education, experience, and technological skills required by firms when hiring workers (downskilling). Tax-induced downskilling is identified at the county level and at individual firms' establishments. It is driven by taxes on middle-class earners. Multi-state corporations internally reassign their hiring of low- vs. high-skill workers according to local personal tax changes. Together with worker downskilling, firms cut IT investment in localities that hike personal taxes. Our results suggest that corporations amplify the ``brain drain'' effect induced by local personal income taxes.
Keywords: State personal income taxes, Skilled labor, Human capital, Firm organizational form
JEL Classification: E24, J23, G31, H24
Suggested Citation: Suggested Citation
Murillo Campello
University of Florida - Warrington College of Business Administration ( email )
PO Box 117165, 201 Stuzin Hall
Gainesville, FL
United States
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
Qiping Xu (Contact Author)
University of Illinois Urbana Champaign ( email )
1206 South Sixth Street
Champaign, IL 61820
United States
Do you have a job opening that you would like to promote on SSRN?
Related eJournals
-
Indiana University Kelley School of Business Research Paper Series
Indiana University Kelley School of Business Research Paper Series
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS5,136PAPERS1,353This Journal is curated by:Craig Eich at Indiana University - Kelley School of Business -
Corporate Finance: Governance, Corporate Control & Organization eJournal
Corporate Finance: Governance, Corporate Control & Organization eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS3,177PAPERS35,581 -
S&P Global Market Intelligence Research Paper Series
S&P Global Market Intelligence Research Paper Series
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS2,630PAPERS43,514 -
Tax eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,593PAPERS3,573This Journal is curated by:Ryan J. Wilson at University of Iowa - Henry B. Tippie College of Business -
Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal
Public Economics: Fiscal Policies & Behavior of Economic Agents eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,295PAPERS3,215 -
Entrepreneurship & Economics eJournal
Entrepreneurship & Economics eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,280PAPERS12,626 -
Political Economy: Taxation, Subsidies, & Revenue eJournal
Political Economy: Taxation, Subsidies, & Revenue eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,158PAPERS14,006 -
IO: Empirical Studies of Firms & Markets eJournal
IO: Empirical Studies of Firms & Markets eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,154PAPERS15,355 -
Political Economy: National, State & Local Government; Intergovernmental Relations eJournal
Political Economy: National, State & Local Government; Intergovernmental Relations eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,128PAPERS7,759 -
IO: Firm Structure, Purpose, Organization & Contracting eJournal
IO: Firm Structure, Purpose, Organization & Contracting eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,052PAPERS13,281 -
Labor: Human Capital eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS843PAPERS20,270 -
Household Finance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS771PAPERS13,142This Journal is curated by:Michael Haliassos at Goethe University Frankfurt - Faculty of Economics and Business Administration, Stephen P. Zeldes at Columbia University - Columbia Business School -
Employee Social Responsibility & HR Practices eJournal
Employee Social Responsibility & HR Practices eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS559PAPERS3,912This Journal is curated by:Timothy M. Devinney at The University of Manchester - Alliance Manchester Business School -
Cornell SC Johnson College of Business Research Paper Series
Cornell SC Johnson College of Business Research Paper Series
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS352PAPERS798This Journal is curated by:Jura Liaukonyte at Cornell SC Johnson College of Business -
Economics of Innovation eJournal
Economics of Innovation eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS326PAPERS21,536 -
Management of Innovation eJournal
Management of Innovation eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS280PAPERS7,418 -
Environment for Innovation eJournal
Environment for Innovation eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS244PAPERS16,241 -
Comparative Political Economy: Comparative Capitalism eJournal
Comparative Political Economy: Comparative Capitalism eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS74PAPERS9,812 -
Comparative Political Economy: Fiscal Policy eJournal
Comparative Political Economy: Fiscal Policy eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS60PAPERS7,916This Journal is curated by:Yusaku Horiuchi at Affiliation not provided to SSRN