The standard static labor supply model ignores that it takes time for individuals to adjust to a taxbenefit reform. A labor supply decision model is developed that allows for lagged responses in terms of state dependence, stemming from preferences, labor market constraints and adjustment costs....

Microsimulation models of the LOTTE system are key tools for tax policy-making in Norway and are extensively used in the budget process. The aim of this paper is to give an overview of the different modules in the LOTTE family - a non-behavioral tax-benefit model for personal income tax...

This paper discusses aspects of a framework for modeling labor supply where the notion of job choice is fundamental. In this framework, workers are assumed to have preferences over latent job opportunities belonging to worker-specific choice sets from which they choose their preferred job. The...

The Carnegie effect (Holtz-Eakin, Joualfaian and Rosen, 1993) refers to the idea that inherited wealth harms recipient's work efforts, and possesses a key role in the discussion of taxation of intergenerational transfers. However, Carnegie effect estimates are few, reflecting that such effects...

In this paper we use a parental leave reform directed towards fathers to identify the causal effects of paternity leave on children's and parents' outcomes. We document that paternity leave causes fathers to become more important for children's cognitive skills. School performance at age 16...

Women experience significant reductions in labor market income following the birth of children, while their male partners experience no such income drops. This "relative child penalty" has been well documented and accounts for a significant amount of the gender income gap. In this paper we do...