abstract: 'This paper empirically investigates the labor market effects of China''s

  2007 VAT reform, which significantly reduced the tax cost of capital

  investment. Employing city-by-year variation in the reform, we

  demonstrate that the tax cuts increased the earnings of skilled workers

  and left the earnings of the unskilled workers unaffected. Moreover, we

  find limited impacts of the reform on employment for both skill groups.

  These results suggest that the tax incentives increased the relative

  demand for skills, thus resulting in a higher income inequality between

  skilled and unskilled workers.'
affiliation: 'Meng, LS (Corresponding Author), Chinese Univ Hong Kong, Dept Econ,
  Shatin, Hong Kong, Peoples R China.

  Li, Hongbin, Stanford Univ, Stanford Inst Econ Policy Res SIEPR, Stanford, CA 94305
  USA.

  Meng, Lingsheng, Chinese Univ Hong Kong, Dept Econ, Shatin, Hong Kong, Peoples R
  China.'
article-number: '102213'
author: Li, Hongbin and Meng, Lingsheng
author-email: hongbinli@stanford.edu
author_list:
- family: Li
  given: Hongbin
- family: Meng
  given: Lingsheng
da: '2023-09-28'
doi: 10.1016/j.labeco.2022.102213
earlyaccessdate: JUL 2022
eissn: 1879-1034
files: []
issn: 0927-5371
journal: LABOUR ECONOMICS
keywords: VAT; Labor market; Inequality; China
keywords-plus: 'CORPORATE-INCOME TAX; INCENTIVES EVIDENCE; COMPLEMENTARITY; INVESTMENT;

  INEQUALITY; IMPACT; WAGES'
language: English
month: OCT
number-of-cited-references: '30'
papis_id: 12f846326fcf842dda34e6d3b9ce2b86
ref: Li2022skillbiased
times-cited: '1'
title: 'Skill biased tax policy change: Labor market effects of China?s VAT reform(star)'
type: article
unique-id: WOS:000839409200002
usage-count-last-180-days: '4'
usage-count-since-2013: '9'
volume: '78'
web-of-science-categories: Economics
year: '2022'