This paper contributes to recent literature emphasizing the importance to identify the different channels along which taxable income responses occur. Using bunching techniques and exploiting a large first kink point where marginal tax rates increase by as much as 38 percentage points, we recover...

The goal of this paper is to analyze short term-absences from work (i.e., periods of seven days or less) in Sweden during a period with two different reforms. As a theoretical model, we use a utility-maximization framework with two restrictions (time and budget constraints). Using multiple spell...

Contrary to frequent recommendations of the public finance literature and international institutions, a persistently high tax wedge on labor is observed in Europe. At the same time, the scope for shifting taxes from labor to more growth-friendly revenue sources appears underused in many European...