We estimate the responses of gross labor income with respect to marginal and average net-of-tax rates in France over … the period 2003-2006. We exploit a series of reforms to the income-tax and payroll-tax schedules affecting individuals who … earn less than twice the minimum wage. Our estimate for the elasticity of gross labor income with respect to the marginal …

the period 2003-2006. We exploit a series of reforms to the income-tax and the payroll-tax schedules that affect … marginal net-of-income-tax rate is around 0.2, while we find no response to the marginal net-of-payroll-tax rate. The … elasticity with respect to the average net-of-tax rates is not significant for the income-tax schedule, while it is close to -1 …

can get an estimate of the taxable income elasticity from the bunching pattern around a kink point. The bunching estimator … cannot identify the taxable income elasticity when the functional form of the distribution of preference heterogeneity is … unknown. We find that an observed distribution of taxable income around a kink point in a budget set can be consistent with …

functional form assumptions in previous PW applications. The estimated sizes of income underreporting in absolute monetary … amounts are almost constant over reported income levels, whereas previous studies have assumed that the underreporting is … proportional to income. …