Arbeitspapier

Intergenerational Income Mobility and Income Taxation

We study the impact of income taxation on intergenerational income correlation. We estimate a life cycle dynastic model and conduct counterfactual analysis to observe the effects of various tax regimes. Compared to a no tax environment, a flat tax regime reduces the correlation only by one percentage points. If the flat tax regime provides child benefits, the correlation additionally declines by four percentage points. Finally, if the taxes are progressive, the reduction, which is due to the increase in the fertility rate (quantity) and the decrease in the educational outcome of children (quality), is highly significant (seven percentage points).

Sprache
Englisch

Erschienen in
Series: GLO Discussion Paper ; No. 409

Klassifikation
Wirtschaft
Estimation: General
Fertility; Family Planning; Child Care; Children; Youth
Time Allocation and Labor Supply
Job, Occupational, and Intergenerational Mobility; Promotion
Thema
Dynastic Models
Discrete Choice
Fertility
Income Taxation

Ereignis
Geistige Schöpfung
(wer)
Kurnaz, Musab
Soytas, Mehmet A.
Ereignis
Veröffentlichung
(wer)
Global Labor Organization (GLO)
(wo)
Essen
(wann)
2019

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kurnaz, Musab
  • Soytas, Mehmet A.
  • Global Labor Organization (GLO)

Entstanden

  • 2019

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