Calendrier du 06 avril 2021
PSI-PSE (Petit Séminaire Informel de la Paris School of Economics) Seminar
Du 06/04/2021 de 17:00 à 18:00
MEDELLIN Juan Camilo (PSE)
Original Sin & Redemption: Foreign Currency Debt and Hedging Strategies in Colombian Non-Financial Firms
Applied Economics Lunch Seminar
Du 06/04/2021 de 12:30 à 13:30
COTTET Sophie (University of Stavanger, Norway)
Payroll Tax Reductions for Minimum Wage Workers: Relative Labor Cost or Cash Windfall Effects?
This paper uses administrative employer-employee data to uncover the effects of a large payroll tax reduction for minimum-wage workers in France in the 1990s. Exploiting the change in labor costs both at the job level and at the firm level, I find that the number of minimum-wage jobs increases but that these additional jobs stem exclusively from firms which had previously very few, or none, minimum wage workers. On the contrary, firms which already employed workers at minimum-wage levels, and thus benefit ex ante from a cash windfall, increase employment irrespective of wage levels.