Who Benefits from State Corporate Tax Cuts? A Local Labor Markets Approach with Heterogeneous Firms

We are very grateful for guidance and support from our advisors: Alan Auerbach, Yuriy Gorodnichenko, Patrick Kline, and Emmanuel Saez. We would like to thank the Editor Luigi Pistaferri and three anonymous referees for their helpful comments. We are also indebted to David Albouy, Dominick Bartelme, Alex Bartik, Pat Bayer, Michael Boskin, Eric Budish, David Card, Jeffrey Clemens, Robert Chirinko, Rebecca Diamond, Jonathan Dingel, Pascaline Dupas, Matt Gentzkow, Gopi Goda, Marc Hafstead, Jim Hines, Caroline Hoxby, Erik Hurst, Koichiro Ito, Matt Leister, Attila Lindner, Neale Mahoney, John McClelland, David Molitor, Enrico Moretti, Pascal Noel, Matt Notowidigdo, Alexandre Poirier, Jim Poterba, Andrés Rodríguez-Clare, Jesse Rothstein, Greg Rosston, Florian Scheuer, John Shoven, Orie Shelef, Reed Walker, Dan Wilson, Danny Yagan, Shuang Zhang, and Eric Zwick for helpful comments and suggestions. We are especially thankful to Nathan Seegert, Dan Wilson and Robert Chirinko, and Jamie Bernthal, Dana Gavrila, Katie Schumacher, Shane Spencer, and Katherine Sydor for generously providing us with tax data. Tim Anderson, Anastasia Bogdanova, Pawel Charasz, Stephen Lamb, Matt Panhans, Prab Upadrashta, John Wieselthier, and Victor Ye provided excellent research assistance. All errors remain our own. This work is supported by the Kauffman Foundation and the Kathryn and Grant Swick Faculty Research Fund at the University of Chicago Booth School of Business. We declare that we have no relevant or material financial interests that relate to the research described in this paper. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• July 9, 2014
• November 26, 2014
• October 9, 2015
• February 26, 2016