Labor Supply Responses of Italian Women to Minimum Income Policies
Minimum income policies are policies aimed at guarantee all citizens with a minimum level of income and at fighting social exclusion typically associated with extreme poverty. Theoretically, their main shortcoming is the disincentive effect on labour market participation they could generate in the bottom part of income distribution, due to the high effective marginal tax rate they impose around the threshold level. This paper employs a structural labor supply model under discrete choices to test the existence and the magnitude of this disincentive effect on Italian female labor supply. Our empirical results show that family structure is crucial in determining the existence of a disincentive effect: only married women experience it, while single women participation rates increase under all possible minimum income schemes. The magnitude of both the positive and the negative effect depend on the policy design
References listed on IDEAS
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.:
- Bargain, Olivier & Orsini, Kristian, 2004.
"In-Work Policies in Europe: Killing Two Birds with One Stone?,"
IZA Discussion Papers
1445, Institute for the Study of Labor (IZA).
- Bargain, Olivier & Orsini, Kristian, 2006. "In-work policies in Europe: Killing two birds with one stone?," Labour Economics, Elsevier, vol. 13(6), pages 667-697, December.
- Bargain, Olivier & Orsini, Kristian, 2004. "In-work policies in Europe: killing two birds with one stone?," EUROMOD Working Papers EM4/04, EUROMOD at the Institute for Social and Economic Research.
- Olivier Bargain & Kristian Orsini, 2004. "In-work policies in Europe: killing two birds with one stone?," DELTA Working Papers 2004-13, DELTA (Ecole normale supérieure).
- Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-121, May.
- Guyonne Kalb & Rosanna Scutella & Hsein Kew, 2002.
"Estimation of Wage Equations in Australia: Allowing for Censored Observations of Labour Supply,"
Melbourne Institute Working Paper Series
wp2002n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Guyonne Kalb & Rosanna Scutella, 2002. "Estimation of Wage Equations in Australia: Allowing for Censored Observations of Labour Supply," Melbourne Institute Working Paper Series wp2002n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Miguel Gouveia & Carlos Farinha Rodrigues, 1999. "The impact of a "Minimum Guaranteed Income Program" in Portugal," Working Papers Department of Economics 1999/03, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Aaberge, Rolf & Colombino, Ugo & Strøm, Steinar, 2003.
"Do More Equal Slices Shrink the Cake? An Empirical Investigation of Tax-Transfer Reform Proposals in Italy,"
37/2003, Oslo University, Department of Economics.
- Rolf Aaberge & Ugo Colombino & Steinar Strøm, 2004. "Do more equal slices shrink the cake? An empirical investigation of tax-transfer reform proposals in Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(4), pages 767-785, December.
- Fortin, Bernard & Truchon, Michel & Beausejour, Louis, 1993.
"On reforming the welfare system : Workfare meets the negative income tax,"
Journal of Public Economics,
Elsevier, vol. 51(2), pages 119-151, June.
- Fortin, B. & Truchon, M., 1990. "On Reforming the Welfare System: Workfare Meets the Negative Income Tax," Cahiers de recherche 9016, Université Laval - Département d'économique.
- Daniela del Boca & Marilena Locatelli & Silvia Pasqua, 2000.
"Employment Decisions of Married Women: Evidence and Explanations,"
CHILD Working Papers
wp08_00, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Daniela Del Boca & Marilena Locatelli & Silvia Pasqua, 2000. "Employment Decisions of Married Women: Evidence and Explanations," LABOUR, CEIS, vol. 14(1), pages 35-52, 03.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-161, January.
- Guy Laroque & Bernard Salanie, 2002. "Labour market institutions and employment in France," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(1), pages 25-48.
- Gurgand, Marc & Margolis, David N., 2005.
"Does Work Pay in France? Monetary Incentives and the Guaranteed Minimum Income,"
IZA Discussion Papers
1467, Institute for the Study of Labor (IZA).
- Marc Gurgand & David Margolis, 2005. "Does work pay in France ? Monetary incentives and the guaranteed minimum income," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00193282, HAL.
- Marc Gurgand & David Margolis, 2005. "Does work pay in France? Monetary incentives and the guaranteed minimum income," Cahiers de la Maison des Sciences Economiques bla05002, Université Panthéon-Sorbonne (Paris 1).
- Aaberge, Rolf & Colombino, Ugo & Strom, Steinar, 1999. "Labour Supply in Italy: An Empirical Analysis of Joint Household Decisions, with Taxes and Quantity Constraints," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(4), pages 403-422, July-Aug..
- Arthur van Soest, 1995. "Structural Models of Family Labor Supply: A Discrete Choice Approach," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 63-88.
- Alan Duncan & Mark N. Harris, 2001.
"Simulating the Behavioural Effects of Welfare Reforms among Sole Parents in Australia,"
Melbourne Institute Working Paper Series
wp2001n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Duncan, Alan & Harris, Mark N, 2002. "Simulating the Behavioural Effects of Welfare Reforms among Sole Parents in Australia," The Economic Record, The Economic Society of Australia, vol. 78(242), pages 264-76, September.
- Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
- Blundell, Richard & Macurdy, Thomas, 1999.
"Labor supply: A review of alternative approaches,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695
- William T. Dickens & Shelly J. Lundberg, 1985.
"Hours Restrictions and Labor Supply,"
NBER Working Papers
1638, National Bureau of Economic Research, Inc.
- Carlos Farinha Rodrigues, 2004. "The Redistributive Impact of the Guaranteed Minimum Income Programme in Portugal," Working Papers Department of Economics 2004/09, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
When requesting a correction, please mention this item's handle: RePEc:inq:inqwps:ecineq2008-94. 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: (Maria Ana Lugo)
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.