종업원분 지방소득세가 고용에 미치는 영향과 면세점 기준 개선에 대한 함의

This paper investigates the general belief that the employee portion of local income tax affects negatively on the employments and suggests policy implication for the reform of the tax based on the result. We identity the characteristics of the tax based on the structure of the tax and estimates the effect of the tax on the employment using firm-level data. It is shown that there is a minor negative effect of the employee portion of local income tax on employments and the dissatisfaction on the tax mainly comes from the exemption standard based on the number of employee. We suggest a reform of the tax by changing the exemption standard from the number of employee to total salary, and simulate the result.