Tax Policy and Employment: How Does the Swedish System Fare?
AbstractThis paper reviews the literature on optimal taxation of labour income and the empirical work on labour supply and the elasticity of taxable income in Sweden. It also presents an overview of Swedish taxation of labour income, offers calculations on the development in effective marginal tax rates and participation tax rates, and estimates, using the difference-in-differences method, the impact of tax incentives on employment rates of elderly workers. After this background, we ponder possibilities for reforming the Swedish tax system to improve its labour market impacts. We suggest better targeting the earned income tax credit at families and low-income workers, lowering the top marginal tax rates, and maintaining the tax incentives for older workers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Uppsala University, Department of Economics in its series Working Paper Series, Center for Fiscal Studies with number 2011:2.
Length: 73 pages
Date of creation: 01 Feb 2011
Date of revision:
Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Optimal taxation; labour income taxation; labour supply; taxable income; Swedish tax system.;
Other versions of this item:
- Jukka Pirttilä & Hakan Selin, 2011. "Tax Policy and Employment: How Does the Swedish System Fare?," CESifo Working Paper Series 3355, CESifo Group Munich.
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-02-12 (Accounting & Auditing)
- NEP-ALL-2011-02-12 (All new papers)
- NEP-EUR-2011-02-12 (Microeconomic European Issues)
- NEP-LAB-2011-02-12 (Labour Economics)
- NEP-PBE-2011-02-12 (Public Economics)
- NEP-PUB-2011-02-12 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Liang, Che-Yuan, 2012.
"Nonparametric structural estimation of labor supply in the presence of censoring,"
Journal of Public Economics,
Elsevier, vol. 96(1), pages 89-103.
- Liang, Che-Yuan, 2009. "Nonparametric Structural Estimation of Labor Supply in the Presence of Censoring," Working Paper Series, Center for Fiscal Studies 2009:6, Uppsala University, Department of Economics.
- Liang, Che-Yuan, 2009. "Nonparametric Structural Estimation of Labor Supply in the Presence of Censoring," Working Paper Series 2009:8, Uppsala University, Department of Economics.
- Aaberge, Rolf & Flood, Lennart, 2008.
"Evaluation of an In-work Tax Credit Reform in Sweden: Effects on Labor Supply and Welfare Participation of Single Mothers,"
Working Papers in Economics
319, University of Gothenburg, Department of Economics.
- Aaberge, Rolf & Flood, Lennart, 2008. "Evaluation of an In-Work Tax Credit Reform in Sweden: Effects on Labor Supply and Welfare Participation of Single Mothers," IZA Discussion Papers 3736, Institute for the Study of Labor (IZA).
- Ossi Korkeamäki & Roope Uusitalo, 2009. "Employment and wage effects of a payroll-tax cut—evidence from a regional experiment," International Tax and Public Finance, Springer, vol. 16(6), pages 753-772, December.
- Jukka Pirttilä & Håkan Selin, 2011. "Income Shifting within a Dual Income Tax System: Evidence from the Finnish Tax Reform of 1993," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 120-144, 03.
- Jukka Pirttilä & Ilpo Suoniemi, 2010. "Public Provision, Commodity Demand and Hours of Work: An Empirical Analysis," CESifo Working Paper Series 3000, CESifo Group Munich.
- Laun, Lisa, 2012.
"The effect of age-targeted tax credits on retirement behavior,"
Working Paper Series
2012:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Laun, Lisa, 2012. "The E ffect of Age-Targeted Tax Credits on Retirement Behavior," Research Papers in Economics 2012:14, Stockholm University, Department of Economics.
- Bartels, Charlotte, 2012.
"Long-term participation tax rates,"
2012/20, Free University Berlin, School of Business & Economics.
- Charlotte Bartels, 2013. "Long-Term Participation Tax Rates," SOEPpapers on Multidisciplinary Panel Data Research 609, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Bastani, Spencer & Selin, Håkan, 2014.
"Bunching and non-bunching at kink points of the Swedish tax schedule,"
Journal of Public Economics,
Elsevier, vol. 109(C), pages 36-49.
- Bastani, Spencer & Selin, Håkan, 2011. "Bunching and Non-Bunching at Kink Points of the Swedish Tax schedule," Working Paper Series, Center for Fiscal Studies 2011:12, Uppsala University, Department of Economics.
- Spencer Bastani & Håkan Selin, 2012. "Bunching and Non-Bunching at Kink Points of the Swedish Tax Schedule," CESifo Working Paper Series 3865, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katarina Grönvall).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.