Earnings Distributions and Means-Tested Benefits
This paper considers the question of whether it is possible to identify labour supply incentive effects of a tax and transfer system using information on only the distribution of earnings. The major characteristics of earnings distributions arising from a simple labour supply model are examined. These characteristics include the existence of modes and antimodes caused by kinks where effective marginal tax rates increase and non-convexities in budget constraints arising from means-testing. Actual earnings distributions, concentrating on unemployment benefit recipients, are then examined. It is suggested that the use of such an approach must be severely limited, in view of the fact that there is no one-to-one correspondence between the form of the earnings distribution and the parameters of a tax and transfer system. Copyright 2001 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 40 (2001)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0004-900X|
When requesting a correction, please mention this item's handle: RePEc:bla:ausecp:v:40:y:2001:i:3:p:373-86. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
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.