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Means-Testing the Child Benefit

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  • Tom Kornstad
  • Thor O. Thoresen
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    Abstract

    Improving the distributional impact of transfers may be costly if it reduces labor supply. In this paper we show how effects of changes in the design of the child benefit program can be examined by employing information from behavioral and non-behavioral simulations on micro data. The direct distributional effects are assessed by tax-benefit model calculations, while female labor supply responses to alternative child benefit schemes are simulated under the assumption that choices are discrete. Distributional effects after labor supply responses are also shown. The study confirms that greater targeting of the child benefit is traded against reductions in female labor supply. Copyright 2004 Blackwell Publishing Ltd.

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    Bibliographic Info

    Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

    Volume (Year): 50 (2004)
    Issue (Month): 1 (03)
    Pages: 29-49

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    Handle: RePEc:bla:revinw:v:50:y:2004:i:1:p:29-49

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    Cited by:
    1. Tom Kornstad & Thor Olav Thoresen, 2006. "Effects of Family Policy Reforms in Norway. Results from a Joint Labor Supply and Child Care Choice Microsimulation Analysis," Discussion Papers 450, Research Department of Statistics Norway.
    2. Rolf Aaberge & Ugo Colombino & Tom Wennemo, 2006. "Evaluating alternative representations of the choice sets in models of labour supply," ICER Working Papers 2-2006, ICER - International Centre for Economic Research.
    3. Guyonne Kalb & Thor Thoresen, 2010. "A comparison of family policy designs of Australia and Norway using microsimulation models," Review of Economics of the Household, Springer, vol. 8(2), pages 255-287, June.
    4. Sonja C. Kassenboehmer & John P. Haisken-DeNew, 2009. "Social Jealousy and Stigma: Negative Externalities of Social Assistance Payments in Germany," Ruhr Economic Papers 0117, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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