Isabel Z. Martinez
Universität St. Gallen
CH-9000 St. Gallen
Institutional Affiliations: Universität St. Gallen and LISER
Information about this author at RePEc
NBER Working Papers and Publications
|March 2020||In It Together? Inequality and the Joint Distribution of Income and Wealth in Switzerland|
in Measuring and Understanding the Distribution and Intra/Inter-Generational Mobility of Income and Wealth, Raj Chetty, John N. Friedman, Janet C. Gornick, Barry Johnson, and Arthur Kennickell, editors
Using tax data from several Swiss cantons, I present a set of empirical facts regarding the distribution of wealth and income in Switzerland. First, I shed light on the composition of wealth and income along the distribution, including the very top. I find substantial heterogeneity in the composition for different population groups. Second, I document the joint distribution of income and wealth, where I find a strong correlation between the two, especially at the very top. Third, wealth mobility over a ten year period is substantially lower than income mobility. Persistence in wealth rank is especially strong in the tails: the bottom 20% seem to be stuck in a wealth trap, while those in the top 1% hardly ever leave the top 10% at all unless they die. Fourth, intervivos gifts and inheritanc...
|May 2018||Intertemporal Labor Supply Substitution? Evidence from the Swiss Income Tax Holidays|
with Emmanuel Saez, Michael Siegenthaler: w24634
This paper estimates intertemporal labor supply responses to two-year long income tax holidays staggered across cantons in Switzerland. Swiss cantons shifted from an income tax system based on the previous two years' income to a standard annual pay as you earn system, leaving 2 years of income untaxed. We find significant but quantitatively small responses of earnings with an inter-temporal elasticity of .05 overall. Some groups, such as high wage income earners and especially the self-employed display larger responses with elasticities around .1 and .2 respectively. We find no effects along the extensive margin at all and almost no effects on hours of work suggesting that responses are driven primarily by tax avoidance rather than real labor supply.