Discrete choice Females Labour Supply Model in Luxembourg

Frédéric Berger, Nizamul Islam and Philippe Liegeois

No 2010-10, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: In this study, the household labour supply is modelled as a discrete choice problem assuming that preference for leisure and consumption can be described by a quadratic utility function which allows for non-convexities in the budget set. We assess behavioural responses to the significant changes in the tax-benefit system during 2001-2002 in Luxembourg. Only moderate impact is found, on average, on the efficiency of the economy as measured by the labour supply effects. The impact is indeed concentrated on richer single women. These increase significantly their labour force, which more than doubles the non-behavioural effect of the tax reform on disposable income and boosts the gains in well-being for that part of population.

Keywords: Labour supply; Discrete choice; Households; Microsimulation; Tax reform (search for similar items in EconPapers)
JEL-codes: C25 H24 H31 J22 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2010-06
New Economics Papers: this item is included in nep-dcm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.liser.lu/publi_viewer.cfm?tmp=2883 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:irs:cepswp:2010-10

Access Statistics for this paper

More papers in LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER) 11, Porte des Sciences, L-4366 Esch-sur-Alzette, G.-D. Luxembourg. Contact information at EDIRC.
Bibliographic data for series maintained by Library and Documentation ( this e-mail address is bad, please contact ).