Work incentives and the cost of redistribution via tax-transfer reforms under constrained labor supply:
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Bibliographische Detailangaben
Beteiligte Personen: Fischer, Benjamin (VerfasserIn), Jessen, Robin 1987- (VerfasserIn), Steiner, Viktor 1957- (VerfasserIn)
Format: Elektronisch E-Book
Sprache:Englisch
Veröffentlicht: Berlin Freie Universität Berlin June 25, 2019
Schriftenreihe:Discussion paper / Freie Universität Berlin, School of Business & Economics Economics 2019, 10
Schlagwörter:
Links:https://refubium.fu-berlin.de/handle/fub188/24961
Abstract:Using information on desired and actual hours of work, we formulate a discrete choice model of constrained labor supply. Using the German Socio-Economic Panel and the microsimulation model STSM, we find that hours and participation elasticities are substantially smaller than those in the conventional model. We evaluate two reforms for Germany. Both redistribute to the working poor. The first reform is financed through an increase in the effective marginal tax rate for welfare recipients, the second through an increase in taxes. The first reform is desirable with equal weights, the second if the social planner has substantial redistributive taste
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