Arbeitspapier

Work incentives and the cost of redistribution via tax-transfer reforms under constrained labor supply

Using information on desired and actual hours of work, we formulate a discrete choice model of constrained labor supply. Using the German Socio-Economic Panel and the microsimulation model STSM, we find that hours and participation elasticities are substantially smaller than those in the conventional model. We evaluate two reforms for Germany. Both redistribute to the working poor. The first reform is financed through an increase in the effective marginal tax rate for welfare recipients, the second through an increase in taxes. The first reform is desirable with equal weights, the second if the social planner has substantial redistributive taste.

Sprache
Deutsch

Erschienen in
Series: Discussion Paper ; No. 2019/10

Klassifikation
Wirtschaft
Time Allocation and Labor Supply
Taxation and Subsidies: Efficiency; Optimal Taxation
Household Behavior: General
Thema
Tax-benefit systems
Household labor supply
Labor market constraints
Involuntary unemployment
Marginal cost of public funds

Ereignis
Geistige Schöpfung
(wer)
Fischer, Benjamin
Jessen, Robin
Steiner, Viktor
Ereignis
Veröffentlichung
(wer)
Freie Universität Berlin, School of Business & Economics
(wo)
Berlin
(wann)
2019

Handle
URN
urn:nbn:de:kobv:188-refubium-24961-6
Letzte Aktualisierung
10.03.0033, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Fischer, Benjamin
  • Jessen, Robin
  • Steiner, Viktor
  • Freie Universität Berlin, School of Business & Economics

Entstanden

  • 2019

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