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.
- Language
-
Deutsch
- Bibliographic citation
-
Series: Discussion Paper ; No. 2019/10
- Classification
-
Wirtschaft
Time Allocation and Labor Supply
Taxation and Subsidies: Efficiency; Optimal Taxation
Household Behavior: General
- Subject
-
Tax-benefit systems
Household labor supply
Labor market constraints
Involuntary unemployment
Marginal cost of public funds
- Event
-
Geistige Schöpfung
- (who)
-
Fischer, Benjamin
Jessen, Robin
Steiner, Viktor
- Event
-
Veröffentlichung
- (who)
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Freie Universität Berlin, School of Business & Economics
- (where)
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Berlin
- (when)
-
2019
- Handle
- URN
-
urn:nbn:de:kobv:188-refubium-24961-6
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fischer, Benjamin
- Jessen, Robin
- Steiner, Viktor
- Freie Universität Berlin, School of Business & Economics
Time of origin
- 2019
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