Tax Policy and Employment: How Does the Swedish System Fare?
This paper reviews the literature on optimal taxation of labour income and the empirical work on labour supply and the elasticity of taxable income in Sweden. It also presents an overview of Swedish taxation of labour income, offers calculations on the development in effective marginal tax rates and participation tax rates, and estimates, using the difference-in-differences method, the impact of tax incentives on employment rates of elderly workers. After this background, we ponder possibilities for reforming the Swedish tax system to improve its labour market impacts. We suggest better targeting the earned income tax credit at families and low-income workers, lowering the top marginal tax rates, and maintaining the tax incentives for older workers.
|Date of creation:||01 Feb 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden|
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Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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- Jukka Pirttilä & Ilpo Suoniemi, 2014.
"Public Provision, Commodity Demand, and Hours of Work: An Empirical Analysis,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 116(4), pages 1044-1067, October.
- Jukka Pirttilä & Ilpo Suoniemi, 2010. "Public provision, commodity demand and hours of work: An empirical analysis," Working Papers 1079, University of Tampere, School of Management, Economics.
- Jukka Pirttilä & Ilpo Suoniemi, 2010. "Public Provision, Commodity Demand and Hours of Work: An Empirical Analysis," CESifo Working Paper Series 3000, CESifo Group Munich.
- Aaberge, Rolf & Flood, Lennart, 2008.
"Evaluation of an In-work Tax Credit Reform in Sweden: Effects on Labor Supply and Welfare Participation of Single Mothers,"
Working Papers in Economics
319, University of Gothenburg, Department of Economics.
- Aaberge, Rolf & Flood, Lennart, 2008. "Evaluation of an In-Work Tax Credit Reform in Sweden: Effects on Labor Supply and Welfare Participation of Single Mothers," IZA Discussion Papers 3736, Institute for the Study of Labor (IZA).
- Liang, Che-Yuan, 2009.
"Nonparametric Structural Estimation of Labor Supply in the Presence of Censoring,"
Working Paper Series, Center for Fiscal Studies
2009:6, Uppsala University, Department of Economics.
- Liang, Che-Yuan, 2012. "Nonparametric structural estimation of labor supply in the presence of censoring," Journal of Public Economics, Elsevier, vol. 96(1), pages 89-103.
- Liang, Che-Yuan, 2009. "Nonparametric Structural Estimation of Labor Supply in the Presence of Censoring," Working Paper Series 2009:8, Uppsala University, Department of Economics.
- Ossi Korkeamäki & Roope Uusitalo, 2009. "Employment and wage effects of a payroll-tax cut—evidence from a regional experiment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(6), pages 753-772, December.
- Jukka Pirttilä & Matti Tuomala, 2007. "Labour income uncertainty, taxation and public good provision," Economic Journal, Royal Economic Society, vol. 117(518), pages 567-582, 03.
- Jukka Pirttilä & Håkan Selin, 2011. "Income Shifting within a Dual Income Tax System: Evidence from the Finnish Tax Reform of 1993," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 120-144, 03.
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