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Income Tax Flattening: Does It Help to Reduce the Shadow Economy?

Sabirianova Peter, Klara - Institute for the Study of Labor (IZA) - 2009

This paper examines the effect of global transition to simpler, flatter income tax systems on the size of the shadow economy. By offering a new estimation framework, the paper revives the traditional electricity consumption approach to measuring the shadow economy. It overcomes the limitations...

Persistent link: https://www.econbiz.de/10005004575

Increasing Returns to Education and the Skills Under-Investment Trap

Booth, Alison; Coles, Melvyn - Institute for the Study of Labor (IZA) - 2005

We model educational investment and labor supply in a competitive economy with home and market production. Heterogeneous workers are assumed to have different productivities both at home and in the workplace. We investigate the degree to which there is under-investment in human capital, and...

Persistent link: https://www.econbiz.de/10005233767

Social Interactions in the Labor Market

Grodner, Andrew; Kniesner, Thomas J.; Bishop, John A. - Institute for the Study of Labor (IZA) - 2011

We examine theoretically and empirically social interactions in labor markets and how policy prescriptions can change dramatically when there are social interactions present. Spillover effects increase labor supply and conformity effects make labor supply perfectly inelastic at a reference group...

Persistent link: https://www.econbiz.de/10009283580

Labor Earnings Respond Differently to Income-Tax and to Payroll-Tax Reforms

Lehmann, Etienne; Marical, François; Rioux, Laurence - Institute for the Study of Labor (IZA) - 2011

We estimate the responses of gross labor earnings with respect to marginal and average net-of-tax rates in France over the period 2003-2006. We exploit a series of reforms to the income-tax and the payroll-tax schedules that affect individuals who earn less than twice the minimum wage. Our...

Persistent link: https://www.econbiz.de/10009369414

The Direct Incidence of Corporate Income Tax on Wages

Arulampalam, Wiji; Devereux, Michael P.; Maffini, Giorgia - Institute for the Study of Labor (IZA) - 2010

We examine the extent to which taxes on corporate income are directly shifted onto the workforce. We use data on 55,082 companies located in nine European countries over the period 1996-2003. We identify this direct shifting through cross-company variation in tax liabilities, conditional on...

Persistent link: https://www.econbiz.de/10008694995

Labor Supply Heterogeneity and Demand for Child Care of Mothers with Young Children

Apps, Patricia; Kabátek, Jan; Rees, Ray; van Soest, Arthur - Institute for the Study of Labor (IZA) - 2012

This paper introduces a static structural model of hours of market labor supply, time spent on child care and other domestic work, and bought in child care for married or cohabiting mothers with pre-school age children. The father's behavior is taken as given. The main goal is to analyze the...

Persistent link: https://www.econbiz.de/10010695869

Are Income and Consumption Taxes Ever Really Equivalent? Evidence from a Real-Effort Experiment with Real Goods

Blumkin, Tomer; Ruffle, Bradley; Ganun, Yosef - Institute for the Study of Labor (IZA) - 2010

The public finance literature demonstrates the equivalence between consumption and labor-income (wage) taxes. We introduce an experimental paradigm in which individuals make real labor-leisure choices and spend their earned income on real goods. We use this paradigm to test whether a...

Persistent link: https://www.econbiz.de/10008611322

Volatility and Growth: Governments are Key

Jetter, Michael - Institute for the Study of Labor (IZA) - 2013

paper offers a solution to this disagreement, suggesting that volatility carries a positive direct effect, but also a … volatility is then ambiguous. The paper reveals the underlying endogeneity of government size in a balanced panel of 95 countries … increase of volatility lowers growth by up to 0.57 percentage points in a democracy, but raises growth by 1.74 percentage …

Persistent link: https://www.econbiz.de/10010959641

Growth, Volatility and Political Instability: Non-Linear Time-Series Evidence for Argentina, 1896-2000

Campos, Nauro F.; Karanasos, Menelaos - Institute for the Study of Labor (IZA) - 2007

What is the relationship between economic growth and its volatility? Does political instability affect growth directly … or indirectly, through volatility? This paper tries to answer such questions using a power-ARCH framework with annual … legislative changes) has an indirect (through volatility) negative impact. We also find preliminary support for the idea that …

Persistent link: https://www.econbiz.de/10005761766

Two to Tangle: Financial Development, Political Instability and Economic Growth in Argentina (1896–2000)

Campos, Nauro F.; Karanasos, Menelaos G.; Tan, Bin - Institute for the Study of Labor (IZA) - 2008

.g., cabinet changes) has an indirect (through volatility) impact on growth; (iii) the effect of financial development is positive … and, surprisingly, not via volatility; (iv) the informal instability effects are much larger in the short- than in the …

Persistent link: https://www.econbiz.de/10005703824