The optimal design of low income support is examined using a structural labour supplymodel. The approach incorporates unobserved heterogeneity, fixed costs of work, childcarecosts and the detailed non-convexities of the tax and transfer system. The analysis considerspurely Pareto improving...

This paper focuses on the links between informal care provision and labour market activity atthe sub-national level. Within-country analysis of this issue has been very limited to datedespite the wide regional variations in informal care provision that often exist. This issue isimportant in the...

Despite numerous studies on labor supply, the size of elasticities is rarely comparable acrosscountries. In this paper, we suggest the first large-scale international comparison ofelasticities, while netting out possible differences due to methods, data selection and theperiod of investigation....

We investigate spillovers in spousal labour supply exploiting independent variation in hoursworked generated by the introduction of the shorter workweek in France in the late 1990s.We find that female and male employees treated by the shorter legal workweek reduce theirweekly labour supply by...

Most empirical studies on the impact of labour income taxation on the labour supplybehaviour of households use a unitary modelling approach. In this paper we empiricallyanalyze income taxation and the choice of working hours by combining the collectiveapproach for household behaviour and the...

Discrete-choice models of labor supply have become very popular for ex ante evaluations ofpolicy reforms as they easily account for non-convex budget sets. We test the constraintsimposed in practice on these models and suggest a fully flexible model that significantlyimproves fit....

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...

In this paper we provide an overview of the literature relating labour supply to taxes and welfare benefits with a focus on presenting the empirical consensus. We begin with a basic continuous hours model, where individuals have completely free choice over their hours of work. We then consider...

We analyse how physicians respond to contractual changes and incentives within amultitasking environment. In 1999 the Quebec government (Canada) introduced an optionalmixed compensation system, combining a fixed per diem with a discounted (relative to thetraditional fee-for-service system) fee...

This paper contributes to the debate about the optimal design of tax-transfer systems. Basedon the theory of optimal taxation, combined with microsimulation and microeconometrictechniques we derive the welfare function which makes the current German tax and transfersystem for single women optimal...