A Decade of Tax and Benefit Reforms in Sweden -Effects on Labour Supply, Welfare and Inequality
Sweden has experienced a sequence of tax and benefit reforms during the last decade. In this paper, the authors evaluate these reforms from labor supply, welfare, and inequality points of view. They depart from a household labor supply model. Simulation of the model reveals that tax and benefit reforms have led to a considerable reduction of the excess burden. Regarding social welfare and inequality, the authors show that the results depend to a large extent on the income inequality measure and the measure of social welfare as well as the income concept (household disposable income or money metric utility). Copyright 1998 by The London School of Economics and Political Science
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