cover image: Wage effects of means-tested transfers: Incidence implications of using firms as intermediaries

Wage effects of means-tested transfers: Incidence implications of using firms as intermediaries

22 Oct 2024

This is because under the SFC, firms had to report the number of workers receiving the benefit and the amount paid to each in order to deduct the transfer from payroll taxes. [...] Moreover, wages are renego- tiated more often because of persistent inflation.8 Figure I.1b describes the evolution of the upper bracket thresholds from 2003 to 2011, jointly with the evolution of the 7Figure I.1a presents the parameters defining the AAFF transfer scheme for the early years of our data. [...] The situation before the reform is well- documented in a book compiled by the SSA: “...the old system (SFC) blurred the State’s role as the entity responsible for the benefits. [...] We use the same framework to compute the first-stage change in the transfer, us- ing the monthly transfer gap of workers with and without children as the dependent variable. [...] The 2SLS is the Wald estimate, where we scale the reduced-form by the first-stage change in the transfer.

Authors

Santiago Garriga and Dario Tortarolo

Pages
103
Published in
United Kingdom

Table of Contents