The 1980s tax reforms and the changing dispersion of wages offer one of the best opportunities yet to estimate labor supply effects. Nevertheless, changing sample composition, aggregate shocks, the changing composition of the tax paying population, and discontinuities in the tax system create...

In this paper we examine the labour market impact of the proposed new earned income tax credit - Working Families Tax Credit - in the U.K. Family labour supply behaviour is modelled as a discrete choice among a finite set of hours alternatives. Our estimation strategy allows for a random...

With increasing globalisation of knowledge, there are increased opportunities to 'learn' from the experience ofpolicy interventions elsewhere. This paper presents evidence on the extent of international convergence inpublic policy, with particular focus on labour, welfare, savings and retirement...

There have been significant recent advances in the estimation of labour supply models. Here the hours continuum is split into a number of discrete options and the preferred choice obtained as the solution to a constrained utility maximisation problem. However, the underlying probabilities of an...

This paper explores an extention of behavioural microsimulation modelling so that third round effects of a policy change can be simulated. The first round effects relate to fixed hours of work, while second round effects allow for changes in desired hours of work at unchanged wages. Third round...

Our paper evaluates the labour supply effects of 'in work' benefit reforms in the UK, using the means-tested benefit reforms of July 1995 as an example. The reforms increased the generosity of all UK 'in work' benefits for those working more than 30 hours a week . This was a response to concerns...

Social security payments are typically thought of as being aimed at those who are not in paid work, whether because of age, ill health, caring responsibilities or involuntary unemployment. The great bulk of social security expenditure does go to such groups, and most social security recipients...

The analysis of the expenditure decisions of English local authorities has assumed great importance as central government has sought to exercise increasing control over the activities of local government. In particular, in a variety of contexts, central government has sought to estimate from...

This paper introduces a recursive algorithm with which to generate complete and accurate budget constraints using static microsimulation models. We describe the generic algorithm and discuss and extension by which reasons for any change in the marginal effective tax rate may be explained. We...