The Aging of the Baby Boomers: Demographics and Propagation of Tax Shocks

Autor:	Domenico Ferraro, Giuseppe Fiori
Rok vydání:	2020
Předmět:	Labour economics Demographics media_common.quotation_subject Tax rate Age groups Demographic change Baby boomers Unemployment Economics Age composition Unemployment rate Demographic economics General Economics Econometrics and Finance health care economics and organizations media_common
Zdroj:	American Economic Journal: Macroeconomics. 12:167-193
ISSN:	1945-7715 1945-7707
DOI:	10.1257/mac.20160419
Popis:	We study how the changing demographic composition of the US labor force has affected the response of the unemployment rate to marginal tax rate shocks. Using narratively identified tax changes as proxies for structural shocks, we establish that the responsiveness of the unemployment rates to tax changes varies significantly across age groups: the unemployment rate response of the young is nearly twice as large as that of the old. This heterogeneity is the channel through which shifts in the age composition of the labor force impact the response of the unemployment rate to tax cuts. We find that the aging of the baby boomers considerably reduces the effects of tax cuts on aggregate unemployment. (JEL E24, E62, H24, H31, J21)
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::49cf812ce4c2bca70af184cf01f71851 https://doi.org/10.1257/mac.20160419 Zobrazit plný text záznamu