Incidence and Behavioural Response to Social Security Contributions: An Analysis of Kink Points in France

Abstract : We study the incidence of social security contributions (SSCs) in France relying on the strategy developed by Alvaredo et al. (De Econ, 2017. doi:10.1007/s10645-017-9294-7). This strategy infers the incidence of SSCSs from the discontinuities in earnings distributions created by kink points in the SSC schedule. Using administrative data on earnings for the period 1976–2010, we study approximately 200 such kink points and do not find that they systematically induce a discontinuity in the distribution of gross earnings. This allows us to reject the hypothesis that SSCs are incident on workers, at least locally around kinks. Additionally, we exploit the large variations in SSC rates across kinks and years to estimate the local incidence of both employer and employee SSCs around these thresholds. We find that employer SSCs are shifted to employers while employee SSCs are shifted to employees. These findings are consistent with the economic incidence of SSCs being aligned with their statutory incidence, locally around kink points.
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Article dans une revue
Economist, Springer Verlag, 2017, 165 (2), pp.141-163. 〈10.1007/s10645-017-9297-4〉
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https://hal-pjse.archives-ouvertes.fr/hal-01629379
Contributeur : Caroline Bauer <>
Soumis le : lundi 6 novembre 2017 - 13:40:06
Dernière modification le : jeudi 11 janvier 2018 - 06:28:13

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Antoine Bozio, Thomas Breda, Julien Grenet. Incidence and Behavioural Response to Social Security Contributions: An Analysis of Kink Points in France. Economist, Springer Verlag, 2017, 165 (2), pp.141-163. 〈10.1007/s10645-017-9297-4〉. 〈hal-01629379〉

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