On the heterogeneous effects of tax policy on labor market outcomes

Wifag Adnan, Kerim Peren Arin, Aysegul Corakci, Nicola Spagnolo

Research output: Contribution to journalArticlepeer-review


Many recent studies have documented the heterogeneous effects of government-spending shocks on major macroeconomic variables, particularly on output. We delve deeper into the heterogeneous effects of fiscal policy innovations, but focus on the tax policy innovations and their impact on the labor market, while accounting for gender, race, ethnicity, and the business cycle. Using microlevel data from the United States, we find that: (i) Tax shocks have varying employment effects depending on gender, race, and the stage of the business cycle; (ii) Sector, industry, and occupational segregation in labor markets by gender, race, and ethnicity can explain most of the variation in response to fiscal policy shocks.

Original languageEnglish (US)
Pages (from-to)991-1036
Number of pages46
JournalSouthern Economic Journal
Issue number3
StatePublished - Jan 2022

ASJC Scopus subject areas

  • Economics and Econometrics


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