The Detaxation of Overtime Hours: Lessons from the French Experiment
AbstractIn October 2007 France introduced an exemption on the income tax and social security contributions that applied to wages received for hours worked overtime. The goal of the policy was to increase the number of hours worked. This article shows that this reform has had no significant impact on hours worked. Conversely, it has had a positive impact on the overtime hours declared by highly qualified wage-earners, who have opportunities to manipulate the overtime hours they declare in order to optimize their tax situation, since the hours they work are difficult to verify.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5439.
Length: 44 pages
Date of creation: Jan 2011
Date of revision:
Publication status: published in: Journal of Labor Economics, 2014, 32 (2), 361-400.
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Other versions of this item:
- Pierre Cahuc & Stï¿½phane Carcillo, 2014. "The Detaxation of Overtime Hours: Lessons from the French Experiment," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 32(2), pages 361 - 400.
- Cahuc, Pierre & Carcillo, StÃ©phane, 2011. "The Detaxation of Overtime Hours: Lessons from the French Experiment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8217, C.E.P.R. Discussion Papers.
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-30 (All new papers)
- NEP-LAB-2011-01-30 (Labour Economics)
- NEP-PUB-2011-01-30 (Public Finance)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Another French experiment with work hours going bad
by Economic Logician in Economic Logic on 2011-03-07 15:13:00
- Philippe Askenazy, 2013. "Working time regulation in France from 1996 to 2012," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 37(2), pages 323-347.
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