@techreport{NBERw5053,
 title = "The Incidence of Payroll Taxation: Evidence from Chile",
 author = "Jonathan Gruber",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5053",
 year = "1995",
 month = "March",
 URL = "http://www.nber.org/papers/w5053",
 abstract = {Despite the growing reliance on payroll taxation worldwide, there is limited evidence on the incidence of payroll taxes.  I provide new evidence by examining the experience of Chile before and after the privatization of its Social Security system.  This policy change led to a sharp exogenous reduction in the payroll tax burden on Chilean firms; the average payroll tax rate in my sample fell from 30% to 5% over this six year period.  I use data from a census of manufacturing firms, which contains information on firm specific tax payments and average wages.  I find strong evidence that the incidence of payroll taxation was fully on wages, with no effect on employment.  A potential weakness with this approach is that some of the variation in firm-specific tax rates may be spurious, for example due to measurement error in wages.  I attempt to surmount this problem by using a variety of different estimators, all of which yield consistent evidence of full shifting.},
}