Incidence of Taxes and Welfare Program on Labor Supply and Human Capital Accumulation Decisions

E. Allie

Cahiers de recherche from Universite de Montreal, Departement de sciences economiques

Abstract: The Analysis of Labor Supply and Human Capital Accumulation Decisions in a Life-Cycle Model Where the Utility Level At a Given Period Is a Function of the Market Goods and the Various Allocations of Time Brings Two Types of Trade-Offs. the First One Is Between the Marginal Net Wage Rate and the Marginal Utility of the Time Spent At Work. It Means That the Relationship Between the Labor Supply and the Wage Rate Is Weaker Than the One Observed in the Litterature. the Second One Is Between the Net Marginal Income Return on Time Spent in the Accumulation of Human Capital and the Marginal Utility of the Time Spent in That Activity. in a Context of a Welfare Program, Those Results Can Explain the Behavior of the Working Poor As Well As the Return to the Labor Market Or to Human Capital Accumulation After a Period of Time Spent on a Welfare Program.

Keywords: Labour Suly; Human Resources; Catal; Taxes; Social Welfare; Life Cycle (search for similar items in EconPapers)
Pages: 18P pages
Date: 1987
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Persistent link: https://EconPapers.repec.org/RePEc:mtl:montde:8731

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