The Detaxation of Overtime Hours: Lessons from the French Experiment
In October 2007 France introduced an exemption on the income tax and social security contributions that applied to wages received for hours worked overtime. The goal of the policy was to increase the number of hours worked. This article shows that this reform has had no significant impact on hours worked. Conversely, it has had a positive impact on the overtime hours declared by highly qualified wage-earners, who have opportunities to manipulate the overtime hours they declare in order to optimize their tax situation, since the hours they work are difficult to verify.
|Date of creation:||Jan 2011|
|Date of revision:|
|Publication status:||published in: Journal of Labor Economics, 2014, 32 (2), 361-400.|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Dora L. Costa, 2000.
"Hours of work and the Fair Labor Standards Act: A study of retail and wholesale trade, 1938û1950,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 53(4), pages 648-664, July.
- Dora L. Costa, 1998. "Hours of Work and the Fair Labor Standards Act: A Study of Retail and Wholesale Trade, 1938-1950," NBER Working Papers 6855, National Bureau of Economic Research, Inc.
- Henrik Jacobsen Kleven & Claus Thustrup Kreiner & Emmanuel Saez, 2009. "Why Can Modern Governments Tax So Much? An Agency Model of Firms as Fiscal Intermediaries," NBER Working Papers 15218, National Bureau of Economic Research, Inc.
- Trejo, Stephen J., 1997.
"Does the Statutory Overtime Premium Discourage Long Workweeks?,"
University of California at Santa Barbara, Economics Working Paper Series
qt4c36k4fq, Department of Economics, UC Santa Barbara.
- Stephen J. Trejo, 2003. "Does the statutory overtime premium discourage long workweeks?," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(3), pages 530-551, April.
- Stephen J. Trejo, 2003. "Does the Statutory Overtime Premium Discourage Long Workweeks?," ILR Review, Cornell University, ILR School, vol. 56(3), pages 530-551, April.
- Trejo, Stephen, 2001. "Does the Statutory Overtime Premium Discourage Long Workweeks?," IZA Discussion Papers 373, Institute for the Study of Labor (IZA).
- Bauer, Thomas K. & Zimmermann, Klaus F., 1999.
"Overtime Work and Overtime Compensation in Germany,"
IZA Discussion Papers
48, Institute for the Study of Labor (IZA).
- Bauer, Thomas & Zimmermann, Klaus F, 1999. "Overtime Work and Overtime Compensation in Germany," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(4), pages 419-36, September.
- Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Wiley Blackwell, vol. 38(114), pages 175-208, April.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp5439. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.