The adverse distributional effects of a flat tax are well known and have been documented by empirical research in several countries, including Belgium. Advocates of the flat tax argue, correctly, that these studies do not take into account agents’ behavioural reactions and possible feed back...

We analyze the causal effect of the length of the worker’s commute on worker's productivity, by examining whether commuting time has any effect on worker's labour market supply. Using the Spanish Time Use Survey 2002-03, our GMM/IV estimation yields a positive causal impact of commuting time...

The aim of this paper is to analyse the impact of unobserved preference heterogeneity in empirical applications of discrete choice models of labour supply. Typically, unobserved heterogeneity is estimated either with continuous or discrete mixture models. However, in order to avoid estimation...

Due to its pyramid population structure, Egypt needs to create jobs at a high pace to absorb the many new entrants at its labour market. This article structurally models and quantifies the impact of these demographic shocks and the shedding of public sector jobs on unemployment. The findings...

We assess the labour supply effects of two 'making work pay' reforms in Germany. We provide evidence in favour of policies that distinguish between low effort and low productivity by targeting individuals with low wages rather than individuals with low earnings. In assessing the policies we...