Finkelstein, Amy; McQuillan, Casey; Zidar, Owen; Zwick, Eric - 2023
creating a flat "head tax" per worker, independent of their earnings. This paper develops and calibrates a stylized model of … statutory payroll tax on firms. We find that, under this counterfactual financing, in 2019 the college wage premium would have … would have been nearly 500,000 higher. These calibrated labor market effects of switching from head-tax to payroll-tax …