Haan, Peter; Prowse, Victoria L.; Uhlendorff, Arne - Institute for the Study of Labor (IZA) - 2008
In this paper we develop a dynamic structural life-cycle model of labor supply behavior which fully accounts for the … effect of income tax and transfers on labor supply incentives. Additionally, the model recognizes the demand side driven … rationing risk that might prevent individuals from realizing their optimal labor supply state, resulting in involuntary …