Michael Siegenthaler

KOF Swiss Economic Institute
ETH Zurich
Leonhardstrasse 21
CH–8092 Zürich, Switzerland

E-Mail: siegenthaler@kof.ethz.ch
Institutional Affiliation: KOF Swiss Economic Institute

NBER Working Papers and Publications

November 2018The Abolition of Immigration Restrictions and the Performance of Firms and Workers: Evidence from Switzerland
with Andreas Beerli, Jan Ruffner, Giovanni Peri: w25302
We study a reform that granted European cross-border workers free access to the Swiss labor market and had a stronger effect on regions close to the border. The greater availability of cross-border workers increased foreign employment substantially. Although many cross-border workers were highly educated, wages of highly educated natives increased. The reason is a simultaneous increase in labor demand: the reform increased the size, productivity, and innovation performance of skill-intensive incumbent firms and attracted new firms, creating opportunities for natives to pursue managerial jobs. These effects are mainly driven by firms that reported skill shortages before the reform.
May 2018Intertemporal Labor Supply Substitution? Evidence from the Swiss Income Tax Holidays
with Isabel Z. Martinez, Emmanuel Saez: w24634
This paper estimates intertemporal labor supply responses to two-year long income tax holidays staggered across Swiss cantons. Cantons shifted from an income tax system based on the previous two years' income to a standard annual pay as you earn system, leaving two years of income untaxed. We find significant but quantitatively very small responses of wage earnings with an inter-temporal elasticity of .025 overall. High wage income earners and especially the self-employed display larger responses with elasticities around .1 and .25 respectively, most likely driven by tax avoidance. We find no effects along the extensive margin at all.

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