Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298361 
Year of Publication: 
2024
Series/Report no.: 
Discussion Papers No. 1010
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
How taxation influences income mobility is largely a neglected topic. In this study we discuss the relationship between taxation and income mobility by analyzing both macro and micro data. Administrative register data based on income tax returns are used to produce individual and aggregate measures of income mobility from 1994 to 2021. Income mobility is explained in terms of marginal tax rates on both wage income and capital income. Estimation results are obtained from an autoregressive distributed lag model and a fixed effects linear probability model for the macro and micro data approaches, respectively. The macro and micro evidence point in the same direction - we find that income mobility is negatively influenced by higher marginal tax rates on both earnings and capital income, with the largest effect found for tax on capital income.
Subjects: 
Income mobility
tax effects
administrative register data
JEL: 
D31
H24
H30
Document Type: 
Working Paper

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