Discrete choice Females Labour Supply Model in Luxembourg
In this study, the household labour supply is modelled as a discrete choice problem assuming that preference for leisure and consumption can be described by a quadratic utility function which allows for non-convexities in the budget set. We assess behavioural responses to the significant changes in the tax-benefit system during 2001-2002 in Luxembourg. Only moderate impact is found, on average, on the efficiency of the economy as measured by the labour supply effects. The impact is indeed concentrated on richer single women. These increase significantly their labour force, which more than doubles the non-behavioural effect of the tax reform on disposable income and boosts the gains in well-being for that part of population.
|Date of creation:||Jun 2010|
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- Tom Kornstad & Thor O. Thoresen, 2002.
"A Discrete Choice Model for Labor Supply and Child Care,"
315, Statistics Norway, Research Department.
- Tom Kornstad & Thor Thoresen, 2007. "A discrete choice model for labor supply and childcare," Journal of Population Economics, Springer, vol. 20(4), pages 781-803, October.
- LiÃ©geois, Philippe & Berger, Frederic & Islam, Nizamul & Wagener, Raymond, 2010.
"Cross-validating administrative and survey datasets through microsimulation and the assessment of a tax reform in Luxembourg,"
EUROMOD Working Papers
EM1/10, EUROMOD at the Institute for Social and Economic Research.
- Liégeois, Philippe & Berger, Frédéric & Islam, Nizamul & Wagener, Raymond, 2009. "Cross-validating administrative and survey datasets through microsimulation and the assessment of a tax reform in Luxembourg," IRISS Working Paper Series 2009-16, IRISS at CEPS/INSTEAD.
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