Haan, Peter; Prowse, Victoria; Uhlendorff, Arne - 2008
we develop a dynamic structural life-cycle model of labor supply
behavior which fully accounts for the e ects of income … tax and transfers on la-
bor 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 unemployment. We …