The impact of social security contributions on earnings

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Journal graphic

Frictions and taxpayer responses: evidence from bunching at personal tax thresholds

Journal article

This paper exploits kinks and notches in the UK personal tax schedule over a 40-year period to investigate how taxpayers respond to income tax and social security contributions. It also develops a new approach for identifying selection in who responds and for decomposing responses into hours and wage components.

20 August 2020