Reforming property taxes scientifically is a genuine task that requires research. Based on the 2011 property tax reform that was put into place in Chongqing, this study investigates the effect of the property tax on labor mobility, which is measured by the relative employment rate and relative output using a synthetic control method. The following findings are included in this article. Property tax can increase the relative employment rate of Chongqing. The effect of the property tax is noticeable at the beginning of its implementation and then begins to exhibit a level change. In addition, the property tax can also make a significant contribution to the relative output, particularly in the tertiary sector. Both demonstrate how the property tax facilitates labor mobility and draws workers to Chongqing. Based on a heterogeneous perspective on the labor force, it is found that the property tax policy has a positive absorption effect on the labor force with secondary and tertiary education and a negative crowding effect on the labor force with primary education. This article examines the policy consequences of the property tax policy on labor mobility, which can give policymakers some theoretical and practical support to implement property tax reforms throughout the country.

Xiaoyin Xie. Impact of Property Tax on Labor Mobility—Empirical Study Based on Synthetic Control Method. Academic Journal of Humanities & Social Sciences (2023) Vol. 6, Issue 5: 81-91. https://doi.org/10.25236/AJHSS.2023.060514.

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