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The Effects Of The 1.03 Million Yen Ceiling In A Dynamic Labor Supply Model

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  • YUKIKO ABE

Abstract

"In this paper I examine the effects of a means-tested transfer system in Japan ("1.03 million yen ceiling") in a dynamic labor supply model with endogenous retirement. In Japan, married women have reason to limit their annual earnings to no more than 1.03 million yen in order to receive a number of benefits available to low-income wives, and in fact often choose to do so. In a dynamic model, the optimal labor supply schedule follows a pattern that is not seen in a static framework, which I call the "spillover effect." The paper also examines the properties of dynamic welfare cost of this ceiling. "("JEL "J22, H24, H55) Copyright (c) 2008 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 27 (2009)
Issue (Month): 2 (04)
Pages: 147-163

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Handle: RePEc:bla:coecpo:v:27:y:2009:i:2:p:147-163

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Cited by:
  1. Abe, Yukiko, 2011. "Family labor supply, commuting time, and residential decisions: The case of the Tokyo Metropolitan Area," Journal of Housing Economics, Elsevier, vol. 20(1), pages 49-63, March.
  2. Shingo Takahashi, 2010. "A Structural Estimation of the Effects of Spousal Tax Deduction and Social Security Systems on the Labor Supply of Japanese Married Women," Working Papers EMS_2010_08, Research Institute, International University of Japan.
  3. Takashi Oshio & Kayo Nozaki & Miki Kobayashi, 2013. "Division of Household Labor and Marital Satisfaction in China, Japan, and Korea," Journal of Family and Economic Issues, Springer, vol. 34(2), pages 211-223, June.
  4. Shun-ichiro Bessho & Masayoshi Hayashi, 2013. "ntensive Margins, Extensive Margins, and Spousal Allowances in the Japanes e System of Personal Income Taxes: A Discrete Choice Analysis," CIRJE F-Series CIRJE-F-912, CIRJE, Faculty of Economics, University of Tokyo.
  5. Yamamura, Eiji, 2013. "The effect of young children on their parents’ anime viewing habits: Evidence from Japanese micro data," MPRA Paper 49465, University Library of Munich, Germany.
  6. Oshio, Takashi & Nozaki, Kayo & Kobayashi, Miki, 2011. "Division of Household Labor and Marital Satisfaction in China, Japan, and Korea," PIE/CIS Discussion Paper 502, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.

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