Heterogeneity in Corporate Tax Incidence by Worker Characteristics

Abstract

We study how corporate tax incidence on worker earnings varies across worker characteristics: gender, age, and employment tenure. To do so, we examine effects of the corporate tax cuts introduced by the Tax Cuts and Jobs Act (TCJA), using data from federal tax records and a difference-in-differences empirical design. We find no systematic differential effects by gender but find that TCJA resulted in larger earnings gaps for older workers and long-tenured workers. These gaps become larger towards the top of the within-firm earnings distribution.