Laura Sénécal*, Adrien Pacifico**

Séminaires internes
phd seminar

Laura Sénécal*, Adrien Pacifico**

AMSE
Microeconomic and macroeconomic effects of employment protection legislation uncertainty*
Rich households taxable income: A natural experiment**
Co-écrit avec
Frédéric Dufourt, Céline Poilly*
Lieu

IBD Salle 16

Îlot Bernard du Bois - Salle 16

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Mardi 5 juin 2018| 12:30 - 14:00
Contact(s)

Edward Levavasseur : edward.levavasseur[at]univ-amu.fr
Océane Piétri : oceane.pietri[at]univ-amu.fr
Morgan Raux : morgan.raux[at]univ-amu.fr

Résumé

*We investigate the effect of uncertainty in employment protection legislation (EPL) on firms’ employment decisions, both at microeconomic and macroeconomic level. For this purpose, we consider a heterogeneous firms, dynamic labordemand model in which EPL affects the hiring and firing costs of workers and the premium imposed on overtime hours. EPL uncertainty leads to changes in the optimal employment decisions of firms at the intensive and extensive margins, but since these decisions also rely on other firm-specific and aggregate variables, it also generates shifts in the cross-distribution of these firms at the steady state and over time. We assess whether the model can match key moments of the empirical distributions of firms in France.

**This paper evaluates the taxable income elasticities of high-income households. We focus on a 2013 tax reform creating a unique framework that allows to control for position in the income distribution. The reform treats differently households based on income but also family composition. The analysis is conducted for France with a recently released big administrative panel dataset. I estimate with a triple-difference regression the change in taxable income depending on the group an high-income household belongs to: the untreated (no effect), the ones facing only a change in their disposable income (pure income effect), and those facing a change in marginal tax rate and disposable income (income and substitution effect). Contrasting with the established literature, I show the existence of an income effect.