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...

To balance work and family responsibilities, the Netherlands have chosen a unique model that combines a high female employment rate with a high part-time employment rate. The model is likely to be the result of (societal) preferences as the removal of institutional barriers, like lower marginal...