Artikel

Earned income tax credits, unemployment benefits and wages: Empirical evidence from Sweden

Although there is a large literature on employment effects of earned income tax credits (EITCs) and unemployment benefits, less is known about wage effects. In our model, the impact is via the net (after-tax) replacement rate. Using a panel of individuals from Sweden, we find a positive relationship between the net replacement rate and wages with semi-elasticities in the range 0.2-0.4. This implies that a one per cent reduction in the unemployment benefit level or a one per cent increase in the net-of-tax rate is associated with a fall in the before-tax wage of 0.1-0.2 per cent. EITCs and unemployment benefit reductions are thus likely to induce wage moderation.

Sprache
Englisch

Erschienen in
Journal: IZA Journal of Labor Policy ; ISSN: 2193-9004 ; Volume: 3 ; Year: 2014 ; Pages: 1-20 ; Heidelberg: Springer

Klassifikation
Wirtschaft
Wage Level and Structure; Wage Differentials
Wages, Compensation, and Labor Costs: Public Policy
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Thema
Earned income tax credit
Unemployment benefits
Wage formation

Ereignis
Geistige Schöpfung
(wer)
Bennmarker, Helge
Calmfors, Lars
Seim, Anna
Ereignis
Veröffentlichung
(wer)
Springer
(wo)
Heidelberg
(wann)
2014

DOI
doi:10.1186/s40173-014-0026-1
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Bennmarker, Helge
  • Calmfors, Lars
  • Seim, Anna
  • Springer

Entstanden

  • 2014

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