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
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Englisch
- Erschienen in
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Journal: IZA Journal of Labor Policy ; ISSN: 2193-9004 ; Volume: 3 ; Year: 2014 ; Pages: 1-20 ; Heidelberg: Springer
- Klassifikation
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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
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Earned income tax credit
Unemployment benefits
Wage formation
- Ereignis
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Geistige Schöpfung
- (wer)
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Bennmarker, Helge
Calmfors, Lars
Seim, Anna
- Ereignis
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Veröffentlichung
- (wer)
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Springer
- (wo)
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Heidelberg
- (wann)
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2014
- DOI
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doi:10.1186/s40173-014-0026-1
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Artikel
Beteiligte
- Bennmarker, Helge
- Calmfors, Lars
- Seim, Anna
- Springer
Entstanden
- 2014