Artikel

Labour supply and income distribution effects of the working income tax benefit: A general equilibrium microsimulation analysis

In this study we assess the impact of the Working Income Tax Benefit (WITB) on labour supply, GDP and income distribution in Canada, using a general equilibrium microsimulation model. We also estimate labour supply and demand elasticities using survey data to ensure that households' behaviour is properly captured in the model. Simulation results show that the WITB affects particularly labour market participation of low- and medium-skilled lone-parents families. These positive effects on labour supply translate into higher after-tax incomes leading to a decline in low-income rates and low-income gaps. Our findings suggest that enhancing the WITB could provide additional income support to working Canadian families while reducing work disincentives for those trapped behind the welfare wall.

Sprache
Englisch

Erschienen in
Journal: IZA Journal of Labor Policy ; ISSN: 2193-9004 ; Volume: 2 ; Year: 2013 ; Pages: 1-33 ; Heidelberg: Springer

Klassifikation
Wirtschaft
Statistical Simulation Methods: General
Factor Income Distribution
Computable and Other Applied General Equilibrium Models
Labor Economics Policies
Measurement and Analysis of Poverty
Economywide Country Studies: U.S.; Canada
Thema
general equilibrium
microsimulation
elasticities
labour supply
income distribution
Canada

Ereignis
Geistige Schöpfung
(wer)
Annabi, Nabil
Boudribila, Youssef
Harvey, Simon
Ereignis
Veröffentlichung
(wer)
Springer
(wo)
Heidelberg
(wann)
2013

DOI
doi:10.1186/2193-9004-2-19
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Annabi, Nabil
  • Boudribila, Youssef
  • Harvey, Simon
  • Springer

Entstanden

  • 2013

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