Means-testing the Child Benefit
Improving the distributional impact of transfers may be costly if it reduces labour supply. In this paper we show how effects of changes in the design of the child benefit programme can be examined by deriving information from behavioural and non-behavioural simulations on micro data. The direct distributional effects are assessed by tax-benefit model calculations. Female labour supply responses to alternative child benefit schemes are simulated under the assumption that choices are discrete. The discrete choice model is justified with reference to the complicated process of finding a new job, and the existence of peaks in the empirical distribution of hours is interpreted as variation in number of jobs across states. The distribution of income after labour supply responses is also shown. The analysis confirms that enhanced distributional impact is traded against reductions in labour supply.
|Date of creation:||Nov 1999|
|Date of revision:|
|Contact details of provider:|| Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway|
Phone: (+47) 21 09 00 00
Fax: (+47) 21 09 49 73
Web page: http://www.ssb.no/en/
More information through EDIRC
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.:
- Aaberge, Rolf & Dagsvik, John K & Strom, Steinar, 1995. " Labor Supply Responses and Welfare Effects of Tax Reforms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 635-59, December.
- Thomas MaCurdy & David Green & Harry Paarsch, 1990. "Assessing Empirical Approaches for Analyzing Taxes and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 415-490.
- Aaberge, Rolf, 1997. "Interpretation of changes in rank-dependent measures of inequality," Economics Letters, Elsevier, vol. 55(2), pages 215-219, August.
- Neumark, David & Postlewaite, Andrew, 1998.
"Relative income concerns and the rise in married women's employment,"
Journal of Public Economics,
Elsevier, vol. 70(1), pages 157-183, October.
- David Neumark & Andrew Postlewaite, 1995. "Relative Income Concerns and the Rise in Married Women's Employment," NBER Working Papers 5044, National Bureau of Economic Research, Inc.
- Paul Bingley & Gauthier Lanot & Elizabeth Symons & Ian Walker, 1995. "Child Support Reform and the Labor Supply of Lone Mothers in the United Kingdom," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 256-279.
- Richard Blundell & Thomas MaCurdy, 1998.
"Labour supply: a review of alternative approaches,"
IFS Working Papers
W98/18, Institute for Fiscal Studies.
- Creedy, John, 1998. "Means-Tested versus Universal Transfers: Alternative Models and Value Judgements," The Manchester School of Economic & Social Studies, University of Manchester, vol. 66(1), pages 100-117, January.
- Duncan, Alan & Weeks, Melvyn, 1997. "Behavioural tax microsimulation with finite hours choices," European Economic Review, Elsevier, vol. 41(3-5), pages 619-626, April.
- Besley, Timothy, 1990. "Means Testing versus Universal Provision in Poverty Alleviation Programmes," Economica, London School of Economics and Political Science, vol. 57(225), pages 119-29, February.
- Creedy, John, 1996. "Comparing Tax and Transfer Systems: Poverty, Inequality and Target Efficiency," Economica, London School of Economics and Political Science, vol. 63(250), pages S163-74, Suppl..
- MaCurdy, Thomas E, 1981. "An Empirical Model of Labor Supply in a Life-Cycle Setting," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1059-85, December.
When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:262. 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: (J Bruusgaard)
If references are entirely missing, you can add them using this form.