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We develop and estimate a microeconometric model of household labour supply in four European countries representative of different economies and welfare policy regimes: Denmark, Italy, Portugal and the United Kingdom. We then simulate, under the constraint of constant total net tax revenue...
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constraint of equal tax revenue. All these reforms contain both incentives to work less and incentive to work more. The … incentives to work more seem to prevail, at least for the more productive: the labor supply elasticities, although modest, are …
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