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Family labor supply and proposed tax reforms in the Netherlands

Author

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  • van Soest, A.H.O.

    (Tilburg University, School of Economics and Management)

  • Das, J.W.M.

    (Tilburg University, School of Economics and Management)

Abstract

This paper presents a discrete choice static neo-classical labor supply model for married or cohabiting couples in the Netherlands. The model simultaneously explains the participation decision and the desired number of hours worked. Due to its discrete nature, institutional details of the tax system can be fully incorporated. The model is estimated using Dutch cross-section data. The results are used to simulate the first order labor supply effects of several proposed reforms of the Dutch income tax system. In particular, it is shown that some of the proposed reforms would have a negative effect on the number of married females who prefer a small part-time job. This pitfall is avoided in the proposal that has gone to Parliament.

Suggested Citation

  • van Soest, A.H.O. & Das, J.W.M., 2000. "Family labor supply and proposed tax reforms in the Netherlands," Other publications TiSEM 57d9aef0-cc35-4fb2-9be2-d, Tilburg University, School of Economics and Management.
  • Handle: RePEc:tiu:tiutis:57d9aef0-cc35-4fb2-9be2-d746f1693d75
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    References listed on IDEAS

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    12. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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    Cited by:

    1. van Soest, A.H.O. & Das, J.W.M. & Gong, X., 2000. "A Structural Labor Supply Model with Nonparametric Preferences," Discussion Paper 2000-60, Tilburg University, Center for Economic Research.
    2. Olivier Bargain, 2004. "On modeling household labor supply with taxation," DELTA Working Papers 2004-14, DELTA (Ecole normale supérieure).
    3. Bargain, Olivier & Orsini, Kristian, 2006. "Beans for Breakfast? How Exportable Is the British Workfare Model?," IZA Discussion Papers 2025, Institute for the Study of Labor (IZA).
    4. 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.
    5. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2011. "Tax-Benefit Systems in Europe and the US: Between Equity and Efficiency," CESifo Working Paper Series 3534, CESifo Group Munich.
    6. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2014. "Comparing inequality aversion across countries when labor supply responses differ," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(5), pages 845-873, October.
    7. Lennart Flood & Jörgen Hansen & Roger Wahlberg, 2004. "Household Labor Supply and Welfare Participation in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 39(4).
    8. Georg Struch, 2012. "Entwicklung des integrierten Mikrosimulationsmodells EITDsim," Working Papers 122, Bavarian Graduate Program in Economics (BGPE).

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