Comparing Labor Supply Elasticities in Europe and the United States: New Results

Bargain, Olivier; Orsini, Kristian; Peichl, Andreas

doi:10.1353/jhr.2014.0017

Cited by 152 publications

(238 citation statements)

References 40 publications

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“…In contrast to our calibration, much of the empirical labor-supply literature suggests that the extensive-margin response is larger than the intensive-margin response (Heckman, 1993;Blundell and MaCurdy, 1999;Bargain et al, 2014a). However, recent evidence by Chetty (2012) suggests that intensive-margin elasticities may not be that different from extensive-margin elasticities.…”

Section: Distribution Of Participation Costs and Participation Elastimentioning

confidence: 62%

Revealed social preferences of Dutch political parties

Jacobs

Jongen

Zoutman

2017

Journal of Public Economics

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Section: Distribution Of Participation Costs and Participation Elastimentioning

confidence: 62%

Revealed social preferences of Dutch political parties

Jacobs

Jongen

Zoutman

2017

Journal of Public Economics

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“…Multinational microsimulation models have so far been used mainly to describe the differences in the tax and transfer systems across countries, and to my knowledge, Bargain et al (2014) is the only study that uses a multinational microsimulation model in the labor supply elasticity estimation, and is thus closest to the present study. They use the microsimulation models TAXSIM and EUROMOD to compare labor supply elasticities of men and women in the U.S. and 17 European countries.…”

mentioning

confidence: 93%

“…Most labor supply elasticity estimates come from the structural literature that builds on a family labor supply model (see e.g. Bargain, Orsini, & Peichl, 2014;Blundell, Duncan, McCrae, & Meghir, 2000;Hoynes, 1996;van Soest, 1995). A second group of studies uses a specific tax or transfer reform in the reduced-form estimation of labor supply responsiveness (see e.g.…”

Section: Introductionmentioning

confidence: 99%

Tax and transfer policies and the female labor supply in the EU

Kalíšková

2018

Empir Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This study contributes to the female labor supply responsiveness literature by measuring the effect of tax-benefit policies on female labor supply based on a broad sample of 26 European countries in 2005-2010. The tax-benefit microsimulation model EUROMOD is used to calculate a measure of work incentives at the extensive margin -the participation tax rate, which is then used as the main explanatory variable in a female employment equation. This allows me to deal with the endogeneity of income in a new way by using a simulated instrumental variable based on a fixed EU-wide sample of women. Results suggest that a 10 percentage point increase in the participation tax rate decreases the female employment probability by 2 percentage points. The effect is higher for single mothers, for women in the middle of the skills distribution, and in countries that have lower rates of female employment.JEL Classification: C25, H24, H31, J22

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“…3 However, the variation in the magnitude of labor supply elasticities found in the literature is substantial (see Evers et al (2008), Bargain et al (2014)), and there is little agreement among economists on the size of the elasticity that should be used in economic policy analyses (Fuchs et al, 1998). Heim (2007) and Blau and Kahn (2007) show that married women's wage elasticities have strongly declined over time in the USA.…”

mentioning

confidence: 99%

“…See, e.g., Hausman (1985); Pencavel (1986), Killingsworth and Heckman (1986), Heckman (1993), Blundell and MaCurdy (1999), Meghir and Phillips (2008), Keane (2011), Keane and Rogerson (2012), McClelland and Mok (2012), Bargain et al (2014).…”

mentioning

confidence: 99%

Tax Refunds and Income Manipulation Evidence from the EITC

2017

Self Cite

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. AbstractWelfare programs are important for reducing poverty but create incentives for recipients to maximize their income by either reducing labor supply or manipulating taxable income.In this paper, we quantify the extent of such behavioral responses for the Earned Income Tax Credit (EITC) in the US. We exploit that US states can set top-up rates, which means that, at a given point in time, workers with the same income receive dierent tax refunds in dierent states. Using event studies as well as a border pair design, we document that a raise in the state-EITC leads to more bunching of self-employed tax lers at the rst kink point of the tax schedule. While we document a strong relationship up until the Great Recession in 2007, we nd no eect thereafter.

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Comparing Labor Supply Elasticities in Europe and the United States: New Results

Cited by 152 publications

References 40 publications

Revealed social preferences of Dutch political parties

Revealed social preferences of Dutch political parties

Tax and transfer policies and the female labor supply in the EU

Tax Refunds and Income Manipulation Evidence from the EITC

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