The Effect of Income Taxation on Labor Supply in the United States

Triest, Robert K.

doi:10.2307/145991

Cited by 192 publications

(183 citation statements)

References 11 publications

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“…Burtless and Hausman (1978) explicitly take into account the differently sloped segments of the kinked budget curve by linking the choice of segment to the indirect utility function. This method is frequently used in labour supply studies in the 1980s and 1990s, such as Hausman (1980Hausman ( , 1981; Blomquist (1983); Hausman and Ruud (1984); Arrufat and Zabalza (1986); Blomquist and Hansson-Brusewitz (1990); Bourguignon and Magnac (1990); Colombino and del Boca (1990); Triest (1990);van Soest et al (1990); Flood and MaCurdy (1992); Kuismanen (1997) and Woittiez and Kapteyn (1998). MaCurdy et al (1990) criticise the Hausman method for imposing too strong a priori restrictions on the outcomes.…”

Section: The Empirical Literature On Labour Supply Elasticitiesmentioning

confidence: 99%

The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates

2008

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SummaryThis paper performs a meta-analysis of empirical estimates of uncompensated labour supply elasticities. For the Netherlands, we find that an elasticity of 0.5 for women and 0.1 for men is a good reflection of what the literature reveals. The elasticity for men hardly differs between countries, but for women some cross-country variation is found. The increasing participation rate of women may lead to a somewhat lower elasticity in the future. Both the specification of the hours function and the estimation method are found to affect elasticity estimates.

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Section: The Empirical Literature On Labour Supply Elasticitiesmentioning

confidence: 99%

The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates

2008

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“…Partners' labor supply is assumed to be exogenously determined. Empirical evidence shows that secondary earners are mostly affected by changes in the tax system, whilst primary earners are subject to a different set of incentives (Triest, 1990;Blundell and Macurdy, 1999). A similar sample selection can be found in the methodological contribution of van Soest et al (2002), in Eissa and Hoynes (2004) to study the the labor force participation response of married couples to changes in the tax reforms in the US between 1984 and 1996, and in Bargain et al (2013) and Decoster and Haan (2015) to construct welfare orderings of households according to several welfare criteria.…”

Section: Specification Of Household Preferencesmentioning

confidence: 99%

A welfare evaluation of the 1986 tax reform for married couples in the United States

Picchio

Valletta

2017

Int Tax Public Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. We propose an evaluation of the impact of TRA86 on well-being using different welfare metrics which fully retain preference heterogeneity. We estimate utility functions with preference heterogeneity on the basis of structural models of family labor supply. Then, by way of these estimated preferences, we compute several welfare rankings corresponding to different ethical priors. Finally, we identify the losers and the winners of TRA86 under different ethical priors.JEL Classification: C25, D63, H22, H31, J22

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“…(17) has two errors: g represents heterogeneity of preferences, and f is the error in measuring working hours. Another example is in Triest (1990), where the labor supply equation is:…”

Section: Specifying the Utility Functionmentioning

confidence: 99%

“…The parameter estimates used in this example are from Triest (1990), and they are applied to a cross section of married women extracted from the 1983 PSID. 13 Table 5 lists the tax rates and income brackets for both tax regimes.…”

Section: Example 2: the Tax Reform Act Of 1986 For Married Womenmentioning

confidence: 99%

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A simulation-based welfare loss calculation for labor taxes with piecewise-linear budgets

Fullerton¹,

Gan²

2004

Journal of Public Economics

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Graduated income tax rates and transfer programs create piecewise-linear budget constraints that consist of budget segments and kink points. With any change in these tax rules, each individual may switch between a kink point and a budget segment, between two budget segments, or between two kink points. With errors in the estimated labor supply equation, the new choice is uncertain, and so the welfare effects of a tax change are uncertain. We propose a simulation-based method to compute expected welfare effects that is easy to implement and that fully accounts for uncertainties about choices around kink points. Our method also provides information about expected changes in working hours. D

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The Effect of Income Taxation on Labor Supply in the United States

Cited by 192 publications

References 11 publications

The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates

The Wage Elasticity of Labour Supply: A Synthesis of Empirical Estimates

A welfare evaluation of the 1986 tax reform for married couples in the United States

A simulation-based welfare loss calculation for labor taxes with piecewise-linear budgets

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