The Economic Incidence of Social Security Contributions: Evidence from German Administrative Data
Leibniz Seminar für Arbeitsmarktforschung (BeNA)
Abstract: This paper applies a test for the economic incidence of social security contributions (SSC) based on the reaction of gross wages in response to a variation in social security contributions. Exploiting an increase of the East German taxable maximum of health insurance, a difference-in-differences approach is used to estimate its effects on yearly changes in gross wages.