Estimating Labor Supply Responses Using Tax Reforms
AbstractThe 1980s tax reforms and the changing dispersion of wages offer one of the best opportunities yet to estimate labor supply effects. Nevertheless, changing sample composition, aggregate shocks, the changing composition of the tax paying population, and discontinuities in the tax system create serious identification and estimation problems. The authors develop grouping estimators that address these issues. Their results reveal positive and moderately sized wage elasticities. The authors also find negative income effects for women with children.
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Bibliographic InfoArticle provided by Econometric Society in its journal Econometrica.
Volume (Year): 66 (1998)
Issue (Month): 4 (July)
Other versions of this item:
- Richard Blundell & Alan Duncan & Costas Meghir, 1995. "Estimating labour supply responses using tax reforms," IFS Working Papers W95/07, Institute for Fiscal Studies.
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