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Evaluation of a Tax Reform: A Model with Measurement Error

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  • Euwals, Rob

    ()
    (CPB Netherlands Bureau for Economic Policy Analysis)

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    Abstract

    Parts of the Dutch tax reform 2001 are directed towards fiscal partners in a household and aim at lowering the marginal tax burden of the partner with the lowest (potential) labour income. An important goal of the reform is to increase the employment rate of these partners, which are in majority women. The Dutch Labour Force Survey 1992−2003 shows that the growth of the employment rate of married women after 2001 was larger than for a comparable group of single women. A statistical analysis using a model that accounts for measurement error shows that the growth of the employment rates of women without young children is in line with the predicted effect of the tax reform.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2337.

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    Length: 9 pages
    Date of creation: Sep 2006
    Date of revision:
    Publication status: published in: Applied Economics Letters, 2008, 15 (9), 697-700
    Handle: RePEc:iza:izadps:dp2337

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    Keywords: evaluation; employment; tax reform;

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