In the United States, labor supply tends to be inelastic relative to labor demand, and according to

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In the United States, labor supply tends to be inelastic relative to labor demand, and according to law, payroll taxes are essentially assessed evenly between workers and firms. Given the above situation, are workers or firms more likely to bear the additional burden of an increased payroll tax in the United States? Could this burden be shifted to the firms by assessing the increase in payroll taxes on just firms rather than having firms and workers continue to be assessed payroll taxes equally?
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Labor Economics

ISBN: 978-0073523200

6th edition

Authors: George J. Borjas

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