Flood, Lennart (Department of Economics, School of Economics and Commercial Law, Göteborg University) Pylkkänen, Elina () (Ministry of Finance) Wahlberg, Roger () (Department of Economics, School of Economics and Commercial Law, Göteborg University)
Abstract
In this paper we propose a tax and benefit reform to increase the working hours and to decrease the welfare participation of single mothers in Sweden. We have access to high-quality tax and income data, and use a detailed tax-benefit program to generate precise budget-sets. We formulate and estimate a structural, static model of labor supply and welfare participation. The results suggest that labor supply among single mother households in Sweden is quite elastic, and that there is self-selection into welfare. The proposed reform would generate welfare-gains for virtually everyone in the sample, yet would be revenue neutral.
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number
107.
Length: 43 pages Date of creation: 26 Sep 2003 Date of revision: Handle: RePEc:hhs:gunwpe:0107
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden Phone: 031-773 10 00 Web page: http://www.handels.gu.se/econ/ More information through EDIRC
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Find related papers by JEL classification: I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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