Increasing Hours Worked: Moonlighting Responses to a Large Tax Reform

Tazhitdinova, Alisa

Increasing Hours Worked: Moonlighting Responses to a Large Tax Reform

No 27726, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Moonlighting is increasingly popular in OECD countries, with 5 to 10% of workers holding two or more jobs. However, little is known about the responsiveness of moonlighting to financial incentives due to the lack of identifying variation. This paper studies a unique reform in Germany that allowed workers to hold small secondary jobs tax-free, decreasing the marginal tax rate by between 19.5 to 66pp. I show that the reform resulted in a dramatic increase in moonlighting that was not offset by reductions in primary earnings, and that hours constraints is the key determinant of moonlighting.

JEL-codes: H2 J01 (search for similar items in EconPapers)
Date: 2020-08
New Economics Papers: this item is included in nep-eur, nep-iue, nep-lab, nep-pbe and nep-pub
Note: LS PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as Alisa Tazhitdinova, 2022. "Increasing Hours Worked: Moonlighting Responses to a Large Tax Reform," American Economic Journal: Economic Policy, vol 14(1), pages 473-500.

Downloads: (external link)
http://www.nber.org/papers/w27726.pdf (application/pdf)

Related works:
Journal Article: Increasing Hours Worked: Moonlighting Responses to a Large Tax Reform (2022)
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:nbr:nberwo:27726

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w27726

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).