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30 avril 2024
- handle: 10670/1.3yeiuk
- hal: hal-04564118
info:eu-repo/semantics/OpenAccess
Mots-clés
Profit Shifting Tax Haven Tax Avoidance Multinational Firms Wage Distribution Inequality F - International Economics/F.F2 - International Factor Movements and International Business/F.F2.F23 - Multinational Firms • International Business H - Public Economics/H.H2 - Taxation, Subsidies, and Revenue/H.H2.H26 - Tax Evasion and Avoidance J - Labor and Demographic Economics/J.J3 - Wages, Compensation, and Labor Costs/J.J3.J31 - Wage Level and Structure • Wage Differentials J - Labor and Demographic Economics/J.J3 - Wages, Compensation, and Labor Costs/J.J3.J32 - Nonwage Labor Costs and Benefits • Retirement Plans • Private Pensions M - Business Administration and Business Economics • Marketing • Accounting • Personnel Economics/M.M1 - Business Administration/M.M1.M12 - Personnel Management • Executives; Executive CompensationSujets proches
Earnings Wage rates Wage-fund Departmental salaries Remuneration Pay Salaries Compensation Working class--WagesCiter ce document
Annette Alstadsaeter et al., « Pennies from Haven: Wages and Profit Shifting », HAL-SHS : économie et finance, ID : 10670/1.3yeiuk
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Résumé
Increasing attention has been given to the fact that some multinational enterprises shift income to tax haven countries, an activity that generates inequality in corporate taxation. Here, we examine how profit shifting relates to wage inequality. Using rich matched employer-employee data from Norway, we find that profit-shifting firms pay higher wages, particularly among service firms where the wage premium is approximately 2%. Furthermore, this average e↵ect masks significant within-firm heterogeneity with high-skill occupations – and managers in particular – earning higher shifting wage premiums. CEOs particularly gain, with their wages rising nearly 10%. These results thus suggest that profit shifting by multinationals meaningfully contributes to wage inequality, both between and within firms. Finally, our back-of-the-envelope calculations suggest these higher wages would generate additional income tax revenues which would o↵set around 3% of the fall in Norway’s corporate tax revenues due to profit shifting.