In this paper we propose a tax and benefit reform to increase the working hours and to decrease the welfare … self-selection into welfare. The proposed reform would generate welfare-gains for virtually everyone in the sample, yet …

The purpose of this paper is to evaluate a recent Swedish in-work tax credit reform where we pay particular attention … job opportunities. The results of the evaluation show that the reform generates welfare-gains for virtually every single … participation we find that this reform is almost self-financing.<p> …

changes in number of working hours yet including the effort effect results in an almost self-financed reform. As a reference …

that the Swedish reform is self-financing for single mothers, whereas a 10 per cent deficit follows from the adapted EITC …

. As an application the model is used to evaluate the recent Swedish “make work pay” reform, effective from 2007 and … further reinforced in 2008 and 2009. The key characteristic of this reform is an in-work tax credit and decreased state tax … income inequality. However, even considering the increase in hours of work, the reform is far from being self-financed.<p> …