Filling in the blanks: How does information about the Swedish EITC affect labour supply?

Pär Nyman, Linuz Aggeborn and Rafael Ahlskog

Labour Economics, 2023, vol. 85, issue C

Abstract: We investigate the role of information about tax incentives for the labour–leisure choice. We randomize 37,000 leaflets about the Swedish EITC, and then study the effects with pre-registered analyses and administrative data. Our focus is on the household decision to allocate between labour income and parental leave payments. The EITC and its interactions with the parental leave system is not well-known. Despite the substantial incentives involved, and the flexibility with which a person may earn labour income, we find that information about the EITC has a precisely estimated zero impact on labour supply on the extensive and the intensive margin.

Keywords: Labour supply; Information; Experiment; Earned Income Tax Credit; Sweden (search for similar items in EconPapers)
JEL-codes: I21 I26 J18 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927537123001100
Full text for ScienceDirect subscribers only

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:eee:labeco:v:85:y:2023:i:c:s0927537123001100

DOI: 10.1016/j.labeco.2023.102435

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().