This paper examines the incidence of a substantial and temporary corporate tax increase in France, targeting large firms with turnover above €250 million between 2011 and 2016. Using a difference-in-differences framework and administrative data, we analyze the effects of this tax hike on prices, wages, employment and investment. We find evidence of significant pass-through to output prices, reductions in the total wage bill driven by a decline in employment and a contraction of sales and investment. We also observe increases in turnover and employment of non-treated firms operating in the sectors the most exposed to the temporary tax. These findings highlight the heterogeneous effects of corporate taxes, emphasizing their impact not only on shareholders but also on workers and consumers. We then combine our estimates with a theoretical model to assess the incidence of the corporate income tax in general equilibrium.

Abundant research shows that higher family income improves children’s short- and long-run outcomes, but evidence from some transfer-based income experiments raises questions about whether these gains arise from earnings or transfer income. This paper revisits that question using the Earned Income Tax Credit (EITC)—a large transfer that raises after-tax income for millions of low-income families—and more than 30 years of linked administrative data covering over 15 million individuals. Higher childhood EITC exposure improves adult outcomes: exposed children have higher earnings and employment, lower poverty, better neighborhood quality, and reduced mortality. Decomposing these long-run effects shows an important pathway operates through improved neighborhood quality, as the EITC increases moves to higher-opportunity Census tracts. Effects are largest for children of unmarried and younger parents but remain substantial for children of always-married parents, demonstrating that transfer income itself—beyond parental employment—plays a powerful causal role in shaping long-run well-being.

This article investigates whether capital or labor income drives overall relative income mobility. To this aim, we use Norwegian income registers covering 300,000 individuals over 26 years. A new framework decomposes total income mobility into capital and labor components across the life cycle. Results show: (1) capital and labor mobility measures yield no clear factor ordering; (2) upward mobility is driven by labor income and joint upward movements; and (3) downward mobility is driven by capital income and joint declines. Findings are robust to large jumps and relate to theories of compositional inequality and homoploutia in capital–labor dynamics.

This paper investigates the dynamic effects of natural disasters on income inequality and the inequality-easing role of disaster recovering subsidies. We employ Japan’s municipality-level data from 1999 to 2022, and apply staggered difference-in-differences approach to account for different treatment timing, repeated exposure to disasters, and heterogeneity. We find that disasters have limited effects on post-disaster income inequality (measured by the Gini coefficient and Theil index), but significantly reduce inequality at the extreme values (measured by the P90/P10 ratio). An analysis on the role of disaster-related subsidies reveals that given peculiar pattern of disaster recovery subsidies application in Japan, the subsidies do not eventually explain observed changes in inequality, inferring that market-driven mechanisms rather than disaster-related subsidies account for post-disaster distributional dynamics. Furthermore, we document significant heterogeneity: Earthquakes generate more pronounced inequality than other disasters, and inequality dynamics diverge between cities and rural towns despite similar fiscal responses.