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...

This paper reviews the literature on optimal taxation of labour income and the empirical work on labour supply and the elasticity of taxable income in Sweden. It also presents an overview of Swedish taxation of labour income, offers calculations on the development in effective marginal tax rates...

This paper examines the effect on a measure of social welfare of an in-work payment, involving a discontinuity at an hours threshold. Social welfare is defined in terms of individuals' utilities, which depend on leisure and net income. The in-work payment augments a modified minimum income...