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The Earned Income Tax Credit (EITC) is the cornerstone U.S. anti-poverty program, typically lifting over 5 million … EITC contains strong incentives for non-workers to become employed. Most of the existing economics literature focuses on … federal EITC expansions in the 1980s and 1990s. This paper takes a longer view, studying all federal expansions since the …
Persistent link: https://www.econbiz.de/10012305927
In-work support through the tax-benefit system has proved to be an effective way of increasing labour supply of lone mothers and first earners in couples in a number of OECD countries. At the same time these instruments usually create negative employment incentives for secondary earners. This in...
Persistent link: https://www.econbiz.de/10011388330
The principal means by which individuals and families achieve economic self-sufficiency is through labor market earnings. As a consequence, it is natural for policy makers to look to interventions that increase the ability of individuals and families to achieve an adequate standard of living...
Persistent link: https://www.econbiz.de/10003656934
We analyze the labor supply and income effects of a needs-based minimum benefit system ("Bedarfsorientierte Mindestsicherung") to be introduced in Austria by the end of this/beginning of next year. The aim of this reform is to reduce poverty as well as increasing employment rates of recipients...
Persistent link: https://www.econbiz.de/10009008850
While Earned Income Tax Credit (EITC) expansions are typically associated with improvements in maternal mental health …, little is known about the mechanisms through which the program affects this outcome. The EITC could affect mental health … these mechanisms, we assess the effects of state and federal EITC expansion on mental health, employment and health …
Persistent link: https://www.econbiz.de/10011993870
We study the work hours of Australian couples, using a neoclassical labour-supply model in which couples choose from a small, realistic set of possible wife-husband working hour combinations We introduce three improvements to this standard model. First, we allow partners' preferences about...
Persistent link: https://www.econbiz.de/10003248587
In this paper we develop a discrete model of optimal taxation of married couples and empirically discuss the optimality of income taxation for this group. To this end, we derive the social welfare function which guarantees that joint taxation of married couples is optimal. We will contrast this...
Persistent link: https://www.econbiz.de/10003777808
This paper extends previous research about the determinants of reservation wages by analysing the effect of progressive income taxation on the ratio between reservation and net market wages. Based on micro data for Germany (SOEP) we show that joint income taxation in Germany which discriminates...
Persistent link: https://www.econbiz.de/10003531642
We study the impact of income taxation on both partners' allocation of time to market work and unpaid house work in households with two adults. We estimate a structural household utility model in which the marginal utilities of leisure and house work of both partners are modelled as random...
Persistent link: https://www.econbiz.de/10003985866
This paper studies the design of couples' income taxation when consumption and labor supply decisions within the couple are made by maximizing a weighted sum of the spouses' utilities; bargaining weights are given but specific to each couple. Information structure and labor supply decisions...
Persistent link: https://www.econbiz.de/10010477883