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Local taxation of production factors: their impact on company localisation: what the reforms of the corporate tax can teach us

Banque de France - PARIS - 2017

This project aims to gain knowledge on the links between how tasks are paid and the density of the local population. He will go from the hypothesis that each profession is characterized by a set of tasks, we wish to test if more complex tasks benefit from the “agglomeration bonuses”. If the result is positive, this may explain why the wage bonus is higher in cities for skilled workers. We will first attempt to estimate for each task its productivity elasticity in relation to the density of the population and secondly, to see if this elasticity is positively correlated to the complexity of the task.