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Tax Reform, Sector-specific Labor Supply and Welfare Effects

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Author Info
John K. Dagsvik
Marilena Locatelli
Steinar Strøm

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Abstract

This paper focuses in particular on the 1992 tax reform in Norway. In this reform the top marginal tax rates were cut considerably. We find that the impact on overall labor supply is rather modest, but these modest changes shadow for stronger sectoral changes. The tax reform stimulated the women to shift their labor from the public to the private sector and to work longer hours. A calculation of mean compensated variation, calculated within the framework of a random utility model, shows that the richest households benefited far more from the 1992 tax reform than did the poorest households. Copyright © The editors of the "Scandinavian Journal of Economics" 2009. .

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9442.2009.01565.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Scandinavian Journal of Economics.

Volume (Year): 111 (2009)
Issue (Month): 2 (06)
Pages: 299-321
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Handle: RePEc:bla:scandj:v:111:y:2009:i:2:p:299-321

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This page was last updated on 2009-11-22.

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