Passing the burden: corporate tax incidence in open economies



Table 8: The Effects of the Average Corporate Tax Rate, Openness, and Their Interaction

_____on Gross Wages by Education: Dependent Variable: Ln(Annual Gross Wage)_____

Average Corporate Tax Rate

Low Education

Middle Education

High Education

-0.8522 ***
(.202)

-0.8560 ***
(.203)

-1.0517 ***
(.232)

Openness

-0.8313 ***

(.221)

-0.5169 **
(.254)

-0.1189

(.166)

(Openness- mean open)*Corp Tax

0.1861

(.563)

0.1895
(.586)

-0.2196

(.511)

Age

0.6790

(.614)

0.6821

(.439)

0.8221 **
(.333)

Age-Squared

-0.0084

(.008)

-0.0091

(.006)

-0.0108 **
(.004)

Male

1.0062 ***

(.3251)

-0.6062

(.747)

0.4129

(.335)

GDP per Capita

1.2582 ***
(.253)

0.8855 ***
(.144)

0.7331 ***

(.095)

Year

-0.0192 ***
(.006)

-0.0206 ***
(.007)

-0.0073

(.008)

Constant

22.8936 **

(10.497)

31.2044 ***

(12.201)

2.8470

(18.202)

R-Squared

N__________________________

0.7740

________57________

0.7928
___________57________

0.7732

__________57

Notes: All regressions include random effects and standard errors are clustered at the country level.

*, **, and *** indicate statistical significance at the 10%, 5% and 1% level, respectively.

38



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