This paper explores firms’ bunching responses to training expenses deduction policy using microdata on Chinese manufacturing firms from 2004 to 2007. By exploiting a bunching method, we estimate the elasticities of training intensity with respect to (one plus) the marginal tax rate at the kink...

This paper explores firms’ bunching responses to training expenses deduction policy using microdata on Chinese manufacturing firms from 2004 to 2007. By exploiting a bunching method, we estimate elasticities of training intensity with respect to (one plus) the marginal tax rate at the kink...