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This paper uses a panel of individual tax returns and the `bracket creep' as source of tax rate variation to construct instrumental variables estimates of the sensitivity of income to changes in tax rates. From 1979 to 1981, the US income tax schedule was fixed in nominal terms while inflation...
Persistent link: https://www.econbiz.de/10012471417
This paper reviews a variety of estimates of the demand and supply elasticities of educated labor. It finds that elasticities of substitution between more and less educated labor range fran 1.0 to 2.0 and that elasticities of the supply of students to colleges are also on the order of 1.0 to 2.0...
Persistent link: https://www.econbiz.de/10012478063
labor supply elasticity of 0.33 on the intensive margin and 0.25 on the extensive margin after accounting for frictions …
Persistent link: https://www.econbiz.de/10012463033
Gender-Based Taxation (GBT) satisfies Ramsey's rule of optimality because it taxes at a lower rate the more elastic labor supply of women. This holds when different elasticities between men and women are taken as exogenous. We study GBT in a model in which labor supply elasticities emerge...
Persistent link: https://www.econbiz.de/10012465001
We build a life cycle model of labor supply that incorporates changes along both the intensive and extensive margin and use it to assess the consequences of changes in tax and transfer policies on equilibrium hours of work. We find that changes in taxes have large aggregate effects on hours of...
Persistent link: https://www.econbiz.de/10012465638
beyond those of expected utility theory. It is shown that the curvature of the utility function is directly related to the … ratio of the income elasticity of labor supply to the wage elasticity, holding fixed the degree of complementarity between … a calibration argument showing that a positive uncompensated wage elasticity, as found in most studies of labor supply …
Persistent link: https://www.econbiz.de/10012468704
the micro level means that the aggregate labour supply elasticity is not a structural parameter: any aggregate elasticity …
Persistent link: https://www.econbiz.de/10012457352
labor supply elasticities were small, recent work has identified three key reasons that the aggregate elasticity may be …
Persistent link: https://www.econbiz.de/10012461228
compensated elasticity of income with respect to tax rates. These models are used to perform simulations of bunching and calibrate … the key parameters (the behavioral elasticity and the extent to which taxpayers control their income) to the empirical … income distributions. Except for low income earners, the behavioral elasticity consistent with the empirical results is small …
Persistent link: https://www.econbiz.de/10012471418
We provide new estimates of the separations elasticity, a proximate determinant of the labor supply facing a firm with …
Persistent link: https://www.econbiz.de/10012481303