Recherche en cours

  • REVISÉ "Follow the Money! Combining Household and Firm-Level Evidence to Unravel the Tax Elasticity of Dividends", avec Laurent Bach, Brice Fabre, Arthur Guillouzouic, Claire Leroy et Clément Malgouyres. [document de travail PSE, HAL]

  • We estimate the tax elasticity of dividends using two recent French reforms: a hike in the dividend tax rate followed, five years later, by a cut. To follow the cash movements within the balance sheets of households and firms caused by these reforms, we use newly-accessible personal and corporate tax registries. Following the tax increase, the elasticity of dividends is very large and there is no shifting towards other personal income categories. With firm data we confirm that firms owned by individuals have reacted by cutting dividend payouts, increased financial assets but did not respond in terms of investment. We find suggesting evidence of an increase in firms' spending. After the tax decrease, payouts revert to their initial level, financial asset within firms decrease, and investment is equally not affected. In both tax reforms, we find strong evidence that owner-managers are driving the very large dividend tax elasticity by using their firm as tax shelter from personal taxation.

  • NOUVEAU "Escape or Play Again? How Retiring Entrepreneurs Respond to the Wealth Tax", avec Laurent Bach, Arthur Guillouzouic, et Clément Malgouyres.

  • Using an exhaustive panel of French income and wealth taxpayers, we find that entrepreneurs pay far more wealth taxes once they retire. Despite this, entrepreneurs do not leave France more often than high-wage employees upon retirement. Rather, retired entrepreneurs reinvest part of the proceeds from the sale of their business into tax-favored angel investments.

  • NOUVEAU "Predistribution vs. Redistribution: Evidence from France and the U.S.,", avec Bertrand Garbainti, Jonathan Goupille-Lebret, Malka Guillot et Thomas Piketty. [document de travail CEPR]

  • How much redistribution policies can account for long-run changes in inequality? To answer this question, we quantify the extent of redistribution over time by the percentage reduction from pretax to post-tax inequalities, and decompose the changes in post-tax inequalities into different redistributive policies and changes in pretax inequalities. To estimate these redistributive statistics, we construct homogenous annual series of post-tax national income for France over the 1900-2018 period, and compare them with those recently constructed for the U.S. We obtain three major findings. First, redistribution has increased in both countries over the period, earlier in the U.S., later in France, to reach similar levels today. Second, the substantial long-run decline in post-tax inequality in France over the 1900-2018 period is due mostly to the fall in pretax inequality (accounting for three quarters of the total decline), and to a lesser extent to the direct redistributive role of taxes, transfers and other public spending (about one quarter). Third, the reason why overall inequality is much smaller in France than in the U.S. is entirely due to differences in pretax inequality. These findings suggest that policy discussions on inequality should, in the future, pay more attention to policies affecting pretax inequality and should not focus exclusively on "redistribution".

  • REVISÉ "Does Tax-Benefit Linkage Matter for the Incidence of Social Security Contributions?", avec Thomas Breda et Julien Grenet. [document de travail PSE, HAL] [document de travail IZA]

  • We study the earnings responses to three large increases in employer Social Security contributions (SSCs) in France. We find evidence of full pass-through to workers in the case of a strong and salient relationship between contributions and expected benefits. By contrast, we find limited pass-through of employer SSCs to wages for reforms that increased SSCs with no tax-benefit linkage. Together with a meta-analysis of the literature, we interpret these results as evidence that tax-benefit linkage and its salience matter for incidence, a claim long made by the literature but not backed by direct empirical evidence to date.

  • REVISÉ "The Contribution of Payroll Taxation to Wage Inequality in France", avec Thomas Breda et Malka Guillot.

  • Over the 1967-2015 period, net wage inequality has decreased in France by 25%, in contrast to the significant increase experienced by most developed countries. Less well known is the fact that labor cost inequality has actually increased by 8% over the same period. We show that, (a) standard demand-side explanations for the rise in inequality apply in France when tested using measures of labor cost (as they should be); (b) reforms to payroll taxation, jointly with increases in the minimum wage, can explain a large part of the decrease in net wage inequality, in the context of increasing market inequality.

  • REVISÉ "Impact of later retirement on mortality: Evidence from France", avec Clémentine Garrouste et Elsa Perdrix.

  • This paper investigates the impact of delaying retirement on mortality among the French population. We take advantage of the 1993 pension reform in the private sector to identify the causal effect of an increase in claiming age on mortality. We use administrative data which provide detailed information on career characteristics, dates of birth and death. Our results, precisely estimated, show that an exogenous increase of one year in the claiming age has no significant impact on the probability to die. To test the power of our sample to detect statistically significant effects for rare events like death, we compute minimum detectable effects (MDE). Our MDE estimates suggest that, if an impact of later retirement on mortality would be detectable, it would remain very small in magnitude.