Lecture Introduction

This paper assesses the effects of a tax policy designed to induce manufacturing investment on employee earnings. Following the accelerated depreciation policy in Canada, which lowers the costs of acquiring machinery or equipment, treated firms increase manufacturing investment and employment. However, earnings of incumbent workers at treated firms decrease on average, primarily driven by displaced or low fixed effects workers. Furthermore, both the skill ratio and skill premium increase within firm, providing evidence of skill-biased technological change. Our findings suggest that a tax policy promoting manufacturing investment may contribute to increases in wage inequality both within firm and across firms.

Speaker
Dr. Yige Duan, Assistant Professor, Antai College of Economics and Management, Shanghai Jiao Tong University

Lecture Time
May 12, 2025 (Monday), 13:00–14:30

Venue
Room 347, Qiu Shi Building

Lecture Language
Chinese & English

Moderator
Dr. Lin Lin

Speaker Biography
Dr. Yige Duan holds a Ph.D. in Economics from the University of British Columbia and is currently an Assistant Professor at Antai College of Economics and Management, Shanghai Jiao Tong University, as well as an Associate Editor of the Journal of Asian Economics. His research focuses on labor economics and urban economics, particularly the impact of commuting costs on labor mobility, household location choices, and urban real estate markets. His work has been published in Management Science and recognized with the journal's 2024 Best Paper Award. Additionally, he employs large-scale administrative data to analyze the effects of corporate tax policies on firm development and employee earnings. His related research is currently under revision at American Economic Journal: Economic Policy and received the Best Paper Award at the 2022 Asia-Pacific Financial Markets Annual Conference.

Faculty and students are warmly welcome to attend!