Evaluation of an in-work tax credit reform in Sweden: effects on labor supply and welfare participation of single mothers

Arbeitspapier

The purpose of this paper is to evaluate a recent Swedish in-work tax credit reform where we pay particular attention to labor market exclusion; i.e. individuals in as well as outside the labor force are included in the analysis. To highlight the importance of the joint effects from the tax and the benefit systems it appears particular relevant to analyze the labor supply behavior of single mothers. To this end, we estimate a structural microeconometric model of labor supply and welfare participation. The model accounts for heterogeneity in consumption-leisure preferences as well as for constraints in job opportunities. The results of the evaluation show that the reform generates welfare-gains for virtually every single mother, and moreover benefits low-income households. Finally, due to increased labor supply and decline in welfare participation we find that this reform is almost self-financing.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 3736

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Time Allocation and Labor Supply
• Thema: Labor supply ; single mothers ; in-work tax credit ; social assistance ; random utility model ; Steuerbegünstigung ; Alleinerziehende ; Arbeitsangebot ; Sozialhilfe ; Wirkungsanalyse ; Schweden

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Aaberge, Rolf ; Flood, Lennart
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/35069
• URN: urn:nbn:de:101:1-2008101519
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ