Household Labour Supply and Welfare Participation in Sweden
In this Paper, we formulate and estimate a structural, static model of household labour supply and multiple welfare programme participation. Given the complicated nature of both the income tax schedule and the benefit rules for different welfare programmes, we use unique access to a very detailed micro-simulation model to generate accurate budget sets for each work-welfare combination. Moreover, when determining the budget sets, we use extraordinary high-quality data on earnings and other types of incomes, obtained both from employers and from income tax records. The results suggest that labour supply among two-parent families in Sweden is quite inelastic. A policy simulation designed to increase labour supply incentives for low income families generated substantial positive welfare effects, despite only minor increases in labour supply and decreases in welfare participation.
|Date of creation:||May 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
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.:
- M. Keane & R. Mofitt, 1995.
"A Structural Model of Multiple Welfare Program Participation and Labor Supply,"
95-4, Brown University, Department of Economics.
- Keane, Michael & Moffitt, Robert, 1998. "A Structural Model of Multiple Welfare Program Participation and Labor Supply," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 553-89, August.
- Michael P. Keane & Robert A. Moffitt, 1995. "A structural model of multiple welfare program participation and labor supply," Working Papers 557, Federal Reserve Bank of Minneapolis.
- M. Keane & R. Moffitt, . "A structural model of multiple welfare program participation and labor supply," Institute for Research on Poverty Discussion Papers 1080-96, University of Wisconsin Institute for Research on Poverty.
- Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
- repec:oup:restud:v:53:y:1986:i:4:p:539-58 is not listed on IDEAS
- Bonin, Holger & Kempe, Wolfram & Schneider, Hilmar, 2002. "Household Labor Supply Effects of Low-Wage Subsidies in Germany," IZA Discussion Papers 637, Institute for the Study of Labor (IZA).
- Hausman, Jerry & Ruud, Paul, 1984.
"Family Labor Supply with Taxes,"
American Economic Review,
American Economic Association, vol. 74(2), pages 242-48, May.
- Frank Levy, 1979. "The Labor Supply of Female Household Heads, or AFDC Work Incentives Don't Work Too Well," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 76-97.
- Andren, Thomas, 2003. "The choice of paid childcare, welfare, and labor supply of single mothers," Labour Economics, Elsevier, vol. 10(2), pages 133-147, April.
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- van Soest, A.H.O. & Das, J.W.M., 2000.
"Family labor supply and proposed tax reforms in the Netherlands,"
Other publications TiSEM
57d9aef0-cc35-4fb2-9be2-d, Tilburg University, School of Economics and Management.
- van Soest, A.H.O. & Das, J.W.M., 2000. "Family Labor Supply and Proposed Tax Reforms in the Netherlands," Discussion Paper 2000-20, Tilburg University, Center for Economic Research.
- Hausman, Jerry A, 1985. "The Econometrics of Nonlinear Budget Sets," Econometrica, Econometric Society, vol. 53(6), pages 1255-82, November.
- Hoynes, Hilary Williamson, 1996.
"Welfare Transfers in Two-Parent Families: Labor Supply and Welfare Participation under AFDC-UP,"
Econometric Society, vol. 64(2), pages 295-332, March.
- Hilary Hoynes, 1993. "Welfare Transfers in Two-Parent Families: Labor Supply and Welfare Participation Under AFDC-UP," NBER Working Papers 4407, National Bureau of Economic Research, Inc.
- Xiaodong Gong & Arthur van Soest, 2002.
"Family Structure and Female Labor Supply in Mexico City,"
Journal of Human Resources,
University of Wisconsin Press, vol. 37(1), pages 163-191.
- Gong, Xiaodong & van Soest, Arthur, 2000. "Family Structure and Female Labour Supply in Mexico City," IZA Discussion Papers 214, Institute for the Study of Labor (IZA).
- Gong, X. & van Soest, A.H.O., 1997. "Family Structure and Female Labour Supply in Mexico City," Discussion Paper 1997-114, Tilburg University, Center for Economic Research.
- Rebecca M. Blank, 2002.
"Evaluating Welfare Reform in the United States,"
NBER Working Papers
8983, National Bureau of Economic Research, Inc.
- Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "Evaluating In-Work Benefit Reform: The Working Families Tax Credit in the U.K," JCPR Working Papers 160, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
- Ransom, Michael R, 1987. "An Empirical Model of Discrete and Continuous Choice in Family Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 465-72, August.
- Kapteyn, Arie & Kooreman, Peter & van Soest, Arthur, 1990.
"Quantity Rationing and Concavity in a Flexible Household Labor Supply Model,"
The Review of Economics and Statistics,
MIT Press, vol. 72(1), pages 55-62, February.
- Kapteyn, A.J. & Kooreman, P. & van Soest, A.H.O., 1989. "Quantity rationing and concavity in a flexible household labor supply model," Discussion Paper 1989-16, Tilburg University, Center for Economic Research.
- Richard Blundell & Ian Walker, 1986. "A Life-Cycle Consistent Empirical Model of Family Labour Supply Using Cross-Section Data," Review of Economic Studies, Oxford University Press, vol. 53(4), pages 539-558.
- Thomas MaCurdy & David Green & Harry Paarsch, 1990. "Assessing Empirical Approaches for Analyzing Taxes and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 415-490.
- Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:3905. 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: ()The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.